A Fair Fortnight?

By Donnie Mackay and Laura Campbell, Energy Advice Services at Lochalsh & Skye Housing Association

Whilst we look to world leaders for effective top down solutions to mitigate the climate emergency it is important that we still resolve and breakdown some of the more intrinsic bottom-up UK and Scottish barriers that are hindering a just transition in Scotland. It is reasonable, in fact non-negotiable to demand equally - affordable warmth for all of Scotland’s homes alongside net zero emissions – but currently Governments do not take seriously the challenges of tackling the unfair energy market that hinders that objective. Glasgow traditionally has had a Summer Fair Fortnight – but will this Autumn COP fortnight stimulate the delivery of a different kind of fairness?

Many years ago, we highlighted the electricity tariff differences between North and South Scotland – at the time there was a 2p a unit surcharge in the North for a single rate meter (there is still a surcharge – although smaller today). Looking for equity and a just transition in resolving that situation didn’t work – in essence fuel poverty campaigners in the central belt wouldn’t sanction a small increase in energy prices in the south to allow the delivery of a lower price in the north, the removal of the northern location burden and a resultant cross Scotland equality in electricity pricing.

Today we separately worry about mains Gas price increases – which are a challenge but in simple terms the population who heat from Gas pay around 4p per kw hr for heat yet populations in the highlands and islands including tens of thousands of social housing tenants who can’t access mains gas and instead use electricity for heat via storage heaters currently pay 18.4p per kw hr (SSE THTC tariff). The highlands perversely are an over 300% net exporter of green electricity to the rest of the UK yet pay the highest electricity rates. We say we are concerned about a just transition in energy   - but we are currently not sufficiently concerned about an unjust present.

If a few years back South Scotland electricity consumers would not tolerate a tiny increase in electricity costs to equalise them across Scotland – how are we going to equalise heat costs if the current gap is 14p rather than 2p?

Current policy direction sets an ambition to, in simple terms, abandon Mains Gas at 4p a kw hr and move to nice green electricity yet we forget to look closely at what energy companies want to do with electricity prices. SSE today in North Scotland will offer you 33.5p a kw hr currently to fix your electricity prices for two years ahead. Even SSE’s two-year time of use tariffs like Economy 10 have their cheaper off-peak rates at 32p per kw hr.

Example: SSE Single Rate 2 Year Fix v11 (source https://products.sse.co.uk/our-prices/view-tariffs-and-prices?postcode=iv49%209bl)

Despite Scotland’s green electricity credentials, the electricity market is sabotaging equity and fairness in the present, and will sabotage a just transition, unless UK and Scottish Governments abandon their petty fights over jurisdiction and instead focus on a joined up solution that delivers zero carbon with affordable warmth. Electricity is green but unaffordable. It currently enforces energy rationing for social housing tenants, and without the electricity market being fixed there will be no just transition, and mains gas users will not be persuaded to relinquish their boilers.

So, whilst we await a world leader consensus on tackling the climate emergency – can we at least aspire that the UK and Scottish Governments can join hands together to try and resolve this?