Ofgem urged to introduce short-term special energy tariff for Western Isles

2 December 2024

Calls for a short-term special island energy tariff are being made to help island areas suffering most from fuel poverty.

Comhairle nan Eilean Siar is collaborating with Shetland and Orkney councils in pursuing a better deal for electricity consumers in the islands with to Ofgem, the UK energy regulator.

Despite having the highest rates of fuel poverty in the UK and being positioned to contribute considerable volumes of renewable electricity to the UK National Grid, island households and businesses still pay the highest price for electricity consumed.

Meetings are being held with both governments, energy regulator Ofgem, electricity network owners and the newly nationalised National Energy System Operator, successor to National Grid Electricity System Operator, to identify an effective solution.

In the longer term, a mechanism is being sought to allow an electricity supply company to retail electricity, sourced from wind turbines to consumers in the same postcode region (for example, the Outer Hebrides) at a level of discount linked to the output of the wind turbines.

This solution will require all benefitting households to be fitted with a Smart Meter and the three island councils will be supporting the energy companies in their smart meter rollout campaign for 2025.