Developing An Electricity Satellite Account (EISA): An Application to Scotland, UK

Within the system of national accounts the electricity sector is typically reported as a single entry representing generation, transmission, distribution and trade. The way in which these components interact with the economy differs greatly, a feature lost within the standard accounting framework. In this paper we propose an Electricity Satellite Account (ElSA) approach to better understand the linkages between the economy and the electricity sector, with a particularly focus on generation technologies. To develop this framework, we draw parallels to Tourism Satellite Accounts (TSAs). To illustrate the practical steps in constructing ElSAs, we develop an ElSA for Scotland for 2012. We show how the ELSA framework gives an improved understanding of the electricity sector, which is critical in improving the usefulness of such accounts future climate and energy, as well as economic, policy.