Energy Rebates: Highlands and Islands

Jim Shannon Excerpts

Wednesday 6th November 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for securing the debate. I recall the two Members to whom he referred, including a former colleague, and their campaigns. In the previous debate, I also referred to the 26.5% of people in fuel poverty in Scotland. Does the hon. Gentleman see a methodology to get help with an energy rebate based on temperature, or would he base it on the cost, where it is higher for fuel, in the circumstances that he is referring to?

[Graham Leadbitter]

The basic issue relates to the regional inequity, which has to do with the regulation of the system and of how distribution charges are applied and basic unit prices charged. Those are generally much higher. It is more than just the temperature issue; it is about the whole structure of the energy system.

Fuel poverty rates in our region are stark: 39.8% of households in Na h-Eileanan an Iar, 32.9% in the highlands and 31.6% in Moray experience fuel poverty. In Na h-Eileanan an Iar alone, 24.3% of households face extreme fuel poverty, a rate that is unmatched across the UK.

The highland energy rebate would represent a fair solution. It would be an actionable, just and necessary response to the challenges. The rebate would provide essential financial relief to those burdened by the high cost of energy. Such a measure would help to alleviate the financial pressure on families and individuals who already endure the highest levels of fuel poverty in the UK. Beyond the immediate household impact, a rebate would boost the local economy and reinforce the economic stability of the highlands and islands. By lessening the financial burden of energy costs, we can empower residents, enabling greater participation in our communities and stimulating local economic activity.

What can we learn from the existing frameworks? Critics may argue that implementing such a rebate is complex or costly, but let me be blunt: people who live in fuel poverty and face the choice of heating or eating on a day-to-day basis have a day-to-day existence that is also complex and costly.

Similar rebate frameworks exist not only in various countries across Europe—Norway and Denmark, for example—but here in the UK. The hydro benefit replacement scheme was well intentioned, but it fell short of supporting our vulnerable consumers adequately. In 2022, a brief review noted that the scheme

“does not…provide an efficient or effective way of”

supporting

“vulnerable consumers”.

Given the additional £49 million paid by highlands and islands energy consumers over the past three years, our communities cannot afford continued shortfalls in targeted support. We deserve a scheme that is equitable, modern and regionally tailored. The recently proposed household energy rebate of £10,000 over 10 years for those living near new energy infrastructure underlines the precedent for providing regional support. A highland energy rebate would take us a step further, applying it to areas where renewable energy infrastructure already exists, and supporting the nation.

In conclusion, this is a matter of fairness, equity and regional support. The highlands and islands play a pivotal role in the UK’s clean energy production, yet we bear the highest costs. The highland energy rebate would be an acknowledgment of the contributions of our communities and would ensure a share in the benefits of the energy they help create. I urge everyone here today to support this campaign for a fairer energy system and for economic justice for the highlands and islands, and I hope the Minister will take this opportunity to provide an assurance that the new Government will take this matter seriously and act quickly to address the inequalities in our energy system and lift people out of fuel poverty.