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Energy Rebates: Highlands and Islands

06 March 2024

Lead MP

Drew Hendry
Inverness, Nairn, Badenoch and Strathspey
SNP

Responding Minister

Amanda Solloway

Tags

ClimateEnergy
Word Count: 11407
Other Contributors: 6

At a Glance

Drew Hendry raised concerns about energy rebates: highlands and islands in Westminster Hall. A government minister responded.

Key Requests to Government:

The UK Government should introduce an energy rebate for Highlands and Islands to redistribute wealth generated locally. This could be modelled after the Chancellor's proposal for rebates near new infrastructure, extending it to existing renewable sources.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Inverness, Nairn, Badenoch and Strathspey
Opened the debate
The energy market is broken, with the highlands and islands uniquely disadvantaged due to higher electricity costs, colder climate, and reliance on fuel oil and LPG. The standing charge for electricity in these regions is 50% more than in London despite a colder climate, leading to extreme fuel poverty rates of up to 24%. Renewable energy produced in the region far exceeds local consumption but is exported without benefitting residents.

Government Response

Amanda Solloway
Government Response
Acknowledged concerns about standing charges and announced Ofgem's call for input, which received over 40,000 responses. Discussed the role of Ofgem in setting electricity network charging methodology and addressing geographical challenges such as high distribution costs. Mentioned the hydro benefit replacement scheme providing £112 million annually to reduce distribution charges. Addressed energy prices, support measures, and debt assistance programmes. Highlighted the Great British insulation scheme for improving energy efficiency.
Assessment & feedback
Summary accuracy

About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.