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Independent Scotland will face energy hike

London - Scotland's households and businesses would face higher energy bills if Scots vote in favour of independence from the rest of Britain, the British government warned on Wednesday.

With six months to go until the landmark vote on September 18 that could force an end to Scotland's 300-year union with England, the coalition government of Prime Minister David Cameron published a paper warning of a hike in energy charges.

"The analysis in this paper shows that energy bills for homes and businesses in Scotland would be likely to rise in the event of a vote for Scottish independence," stated the report issued by the Department of Energy and Climate Change.

By 2020, medium-sized manufacturers operating in an independent Scotland could see their annual energy costs jump by at least £110 00.

Yearly household energy bills could rise by a minimum of £38, the paper added.

Scottish Energy Minister Fergus Ewing said the analysis failed "to see the huge benefits of Scotland's abundant energy wealth to consumers".

One of the key questions about independence remains the division of oil reserves in the North Sea situated off the coast of northeast Scotland.

Scotland's First Minister Alex Salmond, who heads the pro-independence Scottish National Party, insists that his country could become an economic powerhouse on its own.

But all three of Britain's main political parties have stressed that an independent Scotland would not be allowed to retain the pound.

Polls point to Scotland remaining part of the United Kingdom but the pro-independence camp has gained some ground in the latest surveys.

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