Council seeks lower electricity tariff 6/10/14
The council points out any wholesale electricity supplier supporting the council’s planned energy supply company would not make much cost savings as it will bear all operational costs and risk.
In addition it faces extra overheads in setting up in the Western Isles which would be a new geographical area for them.
They will have to establish a meter reading contract in the Outer Hebrides, stressed the report.
The council has agreed to establish the supply company but it may be another year before it trades electricity to islanders.
A report highlighted the limited number of electricity firms willing to get involved.
The report stated: “This type of proposition is not going to be of interest to all players within the market, particularly as the Outer Hebrides has a small customer base, and the energy supply company or the council as an entity does not currently offer any generating assets.
“Therefore, the interest has come from companies who are already strategically committed to expanding their community ‘offer,’ or who already have good experience of renewable energy, collective switching and/or community engagement.”
The report pointed out the “particular concern of lack of knowledge as to how many households in the private sector houses are on the Total Heating Total Control meter and tariff which seems to present particular challenges in terms of switching to a new provider, and is a particular feature in the North of Scotland.“
On the other hand there is an “associated opportunity as regards this however, as
the required roll-
The council’s development committee was told the local authority is exploring routes into the market.
The short term plan for the local sale of energy is to have a Hebridean branded product
provided through an existing energy provider -
Cllr Gordon Murray asked: “Will there be protection that the electricity tariff in the islands will stay as a low as it can be.”
“I’m a bit disappointed it has not been considered that we can supply and generate our own electricity as a council. Surely we have the experience to explore that fully.”
Officer answered that that was ultimate objection of the energy supply company but commercially it is very complex and the scale will be huge.
Councillors were told the cost of energy will be governed by the existing energy supplier they go with.
The price to islanders will be lower than the suppliers tariff but would rise and fall as theirs does.
Cllr Kenny Murray asked about electricity meters -
He was told this would be discussed and implemented but was one of the many ‘critical issues’ the council has to work through.