Lowering energy bills remains Comhairle aim

In this arranged photograph the website of Britain's energy regulator Ofgem, is displayed on the screen of a laptop, next to energy bills on a desk in a residential property in Guildford, south of London on August 21, 2024. Britain's Energy regulator Ofgem will on August 23, announce the latest quarterly energy price cap, for October to December, with average household energy bills predicted to rise again. (Photo by Justin TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images) : Given the level of generation in the islands, local consumers will be expecting to see the benefit in their bills.

The question of how to translate vast renewable energy developments into lower electricity bills is being pursued through various routes by Comhairle nan Eilean Siar.

The complexity of the challenge was spelt out to councillors last week in a report from John Cunningham, the Comhairle’s recently appointed chief planning officer. One of the options is to achieve a “special islands tariff”.

Mr Cunningham said that they are working closely with Orkney and Shetland councils and meetings have been held with both UK and Scottish Governments as well as the regulator Ofgem and the newly nationalised National Grid System Operator.

A longer term aim, once power is being generated from the various windpower schemes both onshore and offshore, is to establish an electricity supply company which would retail electricity to island consumers.

However, Mr Cunningham warned the development of a local energy economy where a not-for-profit company sells discounted electricity to island consumers is “an ambitious proposition beset with risk and complexity”.

In the meantime other avenues are being pursued. The report said that, with support from a UK Government innovation fund, the Comhairle is in the process of commissioning expert advice on how local renewable energy developers could offer electricity at a discounted price, via a retailer.

Councillor Angus McCormack, chair of the Outer Hebrides Fuel Poverty Forum, said: “The biggest thing we could do for our peopleis to reduce the cost of electricity. That would make a huge difference but how hard is it going to be?”

Mr Cunningham said: “We are pushing very hard for a policy move and we are hopeful there will be a solution”. He said that there was sympathy within government and the challenge was to turn this into a practical outcome.

Councillor Frances Murray asked about the prospects for “zonal pricing” which would allow electricity to be sold more cheaply in areas where it was generated. However, Mr Cunningham said that “there are a lot of vested interests opposed to zonal pricing”.

These include SSE, Scottish Power and Scottish Renewables who claim it would deter investment in the north of Scotland if the energy had to be sold more cheaply than elsewhere.

At present, the forms of “community benefit” already agreed with developers include the option of substantial stakes in the Lewis Wind Power and Muiteabhal onshore windfarms while Northland Power, the lead developers for the Spiorad na Mara project, have agreed in principle to a £4.5 million a year payment to neighbouring communities.

The deputy leader of the Comhairle, Councillor Duncan Macinnes, said that the approach the Comhairle has taken over the years has been shown to be correct and contrasted it with Shetland where there is minimal community stake in the 443MW Viking onshore windfarm owned by SSE.

Councillor Macinnes said: “Shetland has been shafted by Viking Energy”. SSE has maintained that “community benefit” should be expressed through a fund to which it is contributing £2 million a year rather than shared ownership or an island tariff.