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Delay in launching cheaper local electricity tariff  

 

30 March 2016  

Delays have hit plans for a cheaper electricity supply scheme for the Western Isles.

Cutting household bills by around £130 a year is a "realistic target to aim for" in the short term, according to the council which is leading the proposal.

It has been hoped the scheme would have been launched around now.

But has been pushed back until after the summer at least.

The Comhairle has set up a local independent electricity supply company called Hebrides Energy which also has representation from Hebrides Housing Partnership, Tighean Innse Gall, the Stornoway Trust and Community Energy Scotland.

 

Initially, Hebrides Energy will partner with a licensed UK energy supplier offer a special rate to local families and businesses.

 

 

The supplier is relatively new to the energy market and to the Western Isles. It also lacks experience on this kind of joint venture project.

 

Discussions between the two bodies continue to drag on but it is hoped to seal the deal and introduce a community tariff "during the second half of 2016," said the comhairle.

 

A council spokesman said: "This is a complex process and it is also a new type of partnership for both parties so some elements of working out the relationship are taking longer than anticipated.

"However we are confident that once in place this will bring about real savings for island consumers."

Savings should be greater in the coming years, it is hoped.

The "white label" partnership with a commercial operator will allow Hebrides Energy to gain valuable experience of operating in the energy market.

It will seek to secure its own licence and look at opportunities to make savings by directly investing in windfarms.

In the longer term, the Comhairle intends to negotiate agreements with a raft of community wind turbine operators and the commercial operator of the planned large Stornoway wind farm - to buy and resell electricity generated on local moors to island customers.