Commons Sense

House of Commons · Westminster Hall

Energy Rebates: Highlands and Islands

06 November 2024 · 1 other contributor · 2,834 words

Opened by Graham Leadbitter SNP Moray West, Nairn and Strathspey

Responding minister: Michael Shanks

Energy

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

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

Key points

  • Concerns raised about inequity in energy costs for Highlands and Islands, contributing 5.5% of UK renewable energy with 0.4% of population.
  • Fuel poverty rates are significantly higher: 39.8% in Na h-Eileanan an Iar, 32.9% in the Highlands, and 31.6% in Moray.
  • Asked for a highland energy rebate to provide financial relief to households suffering from high energy costs and fuel poverty.

Key requests to Government

I ask the Government to introduce a highland energy rebate that would provide essential financial relief to those burdened by the high cost of energy, helping to alleviate the financial pressure on families and individuals who already endure the highest levels of fuel poverty in the UK. The rebate should be an actionable, just and necessary response to the challenges faced by our communities.

How the debate unfolded

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

Opened the debate

Graham Leadbitter SNP Moray West, Nairn and Strathspey

I am concerned about the inequity and discrimination in our energy landscape. The highlands and islands contribute disproportionately to the UK's renewable energy supply but bear the highest energy costs, generating about 5.5% of the UK's total renewable energy while constituting only 0.4% of the UK population. Fuel poverty rates are stark: 39.8% in Na h-Eileanan an Iar, 32.9% in the Highlands, and 31.6% in Moray. Households pay about 40% more than the UK average for energy with daily standing charges at 61.98p compared to 41.59p in London.

Other contributors (1)
  • Jim Shannon DUP Strangford

    I thank the hon. Gentleman for securing the debate and recall the campaigns of former colleagues. I questioned whether the methodology to get help with an energy rebate should be based on temperature or cost, especially in areas where fuel is more expensive.

Government Response

Michael Shanks

I thank the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) for securing this debate on energy rebates in the Highlands and Islands of Scotland. Energy bills are too high for many people across the country, but particularly in these regions due to higher distribution costs arising from mountainous terrain, sparse population, distance between houses, and poor weather conditions. The Government aims to lower bills permanently by removing price spikes and speeding up the transition to home-grown clean energy. Great British Energy, a newly established publicly owned company headquartered in Scotland, is set to deliver cheaper energy across the UK, benefiting everyone regardless of their location. Locational pricing is under consideration to better reflect local conditions and reduce costs for communities hosting energy infrastructure. The Government also discussed transmission and distribution costs, noting that while transmission charges are generally lower in Scotland due to it being a net exporter of energy, distribution costs remain high in areas like the Highlands and Islands. To address this, the hydro benefit replacement scheme provides annual assistance worth about £112 million to reduce distribution costs for domestic and non-domestic customers, resulting in an approximate £60 reduction in household bills annually. Standing charges, which are regulated by Ofgem, have been identified as a significant burden on energy bills; however, efforts are being made to lower them through various measures including rebalancing supplier operational costs, increasing tariff variety, and reviewing system cost allocation. The Government has also announced £1 billion for the warm home discount scheme, providing an annual £150 rebate off bills for low-income households. Additionally, the Scottish Government received a substantial funding settlement last year to address fuel poverty issues.

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