Fuel poverty campaigners have warned annual electricity bills could soar by more than £200 in the north of Scotland because of the spiralling cost of new undersea cables.
They raised the alarm last night amid fears consumers in the Highlands and islands, Grampian and Tayside could be left to pick up a £300million tab to replace 70 miles of power lines.
Di Alexander, chairman of the Highlands and Islands Housing Associations Affordable Warmth Group, said the move would be “totally unreasonable” and “add insult to the existing injury” for consumers.
Scottish Hydro Electric Power Distribution (SHEPD) is currently consulting on plans to replace many of the cables to the islands over the next eight years.
The project had been expected to cost £44million – but there are fears the bill could rise to £300million because of a recent requirement in Scotland’s National Marine Plan that all the cables be buried instead of lying on the seabed.
Any increase would have a knock-on impact on consumers in northern Scotland because distribution costs account for about a quarter of bills. The region already pays more for electricity than any other part of the UK because of regional distribution costs.
The Highlands and Islands Housing Associations Affordable Warmth Group has estimated that “every” consumer in northern Scotland would be hit with a bill rise of 5.8% – an average of £73.
But for those who already pay more and live in remote areas – such as Skye and the Western Isles – the group said it could mean a 10% increase of up to £235 a year.
Mr Alexander, who is also the chairman of the group and the Scottish Government’s Rural Fuel Poverty Task Force, said this would be unacceptable.
“My view is that it would be intolerable if the costs of upgrading the network are lumped on to already hard-pressed consumers in the Highlands,” he said.
“It would be totally unreasonable and it only adds insult to the existing injury done to people living in the north of Scotland generally and the Highlands and islands in particular.
“We are already paying a 2p surcharge on their standard basic rate for electricity, and we rely so much more heavily on it to try and keep homes warm in the area with both harshest climatic conditions in the UK and, unsurprisingly, the highest fuel poverty levels in the UK.”
A SHEPD spokesman said: “The aim of the current consultation is to help us establish the full environmental, economic and social impact of protecting submarine cables.
“We understand the need to find a balance between providing a secure electricity supply, a safe marine environment and minimising potential costs to consumers.”
The Press and Journal has been campaigning for a change in the distribution pricing system which means households in northern Scotland pay the highest bills for electricity.
Scottish Conservative leader Ruth Davidson has said the current system is “not right” and that she was hopeful the UK Government would soon begin “very necessary reform”.
SHEPD connects 59 Scottish islands to the electricity network through 111 submarine cables – all but one of which is currently laid on the seabed.
The firm is working with the energy regulator, Ofgem, and Marine Scotland on the future of the submarine cables. In March, Scotland’s National Marine Plan was adopted – providing a framework for all marine activities in Scottish waters, including how submarine electricity cables are laid and protected on the seabed.
Councillor Angus McCormack, chairman of Western Isles Poverty Action Group, urged Scottish ministers to rethink that requirement in the plan.
“That really is the problem. If the Scottish Government were not so keen on the National Marine Plan then this would not be happening,” he said.
“There is no need for it anyway – there has only been one accident in all of the years the cables were not buried and that one was an emergency. It’s going far too far.” He added: “It would be regrettable if these costs were imposed on consumers. On the Western Isles we already have got 71% of people living in fuel poverty.”
Ian Blackford, SNP MP for Ross, Skye and Lochaber, said: “I’ve been campaigning on why energy prices are so high and the fact so many people in the Highlands live in fuel poverty. It’s an area of concern that people are having to make the choice between heating or eating, and we have to see can be done.”
