A plan to cut island households’ electricity bills has taken a step forward.
Last year, Hebrides News revealed the Comhairle wanted to set up a joint venture partnership with an existing licensed electricity supplier to offer a special community tariff to families and businesses within the Outer Hebrides.
A report suggested an average of £130 a year in reduced electricity prices for each household is a “realistic target to aim for in the short term.”
Now consultants MAR Scotland have been hired to provide business planning support to set up the scheme.
The council plans to have the Outer Hebrides Energy Supply Company set up by March.
Comhairle’s plan for local cheaper electricity scheme
13 January 2015
The aim is to sell locally generated renewable electricity at more competitive prices than presently available to island households.
At present, three suppliers are interested in coming to a deal and the council wants
to be launched to the local market as soon as possible -
Initially, this is likely to be under a “white label” arrangement where an existing
big energy supplier offers a cheaper price to islanders under a Hebridean-
Council leader, Angus Campbell, said: ‘Initial market testing indicates that
there is interest from certain suppliers in working with us to develop a product that can be offered specifically to Hebridean consumers, and we are looking forward to working in more detail on this over coming months to see if a package can be put together.”
In the longer term, the council intends to negotiate agreements with a raft of Western
Isles community wind turbine operators and the commercial operator of the planned
large Stornoway wind farm -
That would require the council’s energy supply company to become a licensed supplier in its own right.
The scheme has received funding from the Scottish Government.
A council spokesman said: “With households in the Outer Hebrides experiencing the highest levels of fuel poverty in the UK, taking action to reduce electricity costs is just one strand of the Outer Hebrides fuel poverty sStrategy being implemented by the council and other local agencies.
“The primary causes of fuel poverty are poor energy efficiency, high fuel costs and low incomes, and the Outer Hebrides are severely impacted on all three dimensions.”