I beg to move,
That this House has considered the potential merits of energy rebates for the Highlands and Islands.
It is a pleasure to serve under your chairmanship, Sir Roger. I am here to address a matter of critical importance to my constituents in Moray West, Nairn and Strathspey, and indeed to residents across the highlands and islands: the vital need for a highland energy rebate. I first pay tribute to my predecessor, Drew Hendry, who played a leading role in the campaign, and my hon. Friend the Member for Argyll, Bute and South Lochaber (Brendan O’Hara), who has been involved in the campaign since its inception.
Our region’s unique energy challenges would be met by a highland energy rebate—a solution that is as equitable as it is necessary. First, let us acknowledge the glaring inequity and downright discrimination in our energy landscape. The highlands and islands contribute disproportionately to the UK’s renewable energy supply, yet we bear the highest energy costs. That is particularly unjust considering that our region generates about 5.5% of the UK’s total renewable energy, while our population constitutes only 0.4% of the UK total. Despite the fact that we power homes across the UK, our residents face some of the highest fuel poverty rates in the UK.
That regional discrimination has been compounded by the removal of the winter fuel payment from so many vulnerable people in some of the coldest parts of the UK, in communities such as Aviemore, Kingussie, Newtonmore, Grantown-on-Spey and Tomintoul in the Cairngorms in my constituency, and many others across the entirety of the highlands and islands and Moray. For decades, these communities have paid far more than most for the basic human need to stay warm. People living in the north of Scotland quite literally have energy generated within sight of their homes, but it is transmitted hundreds of miles away so that other consumers can pay significantly less to heat their homes.
This situation is simply a legacy of long-standing structural failures in the energy regulation system, and a lack of action by successive UK Governments and the regulator, Ofgem. In a previous debate, the Minister mentioned giving Ofgem more teeth to deal with energy suppliers, but who deals with Ofgem’s failings? We need to tackle that. As a result of the situation, our residents, especially those not connected to the gas grid—representing the vast majority—rely almost exclusively on electricity for heating. That electricity comes with elevated standing charges and higher unit rates compared with the rest of the UK.
What are the consequences? The impact on the quality of life and economic wellbeing of our communities is severe. Recent data from the Highlands and Islands housing associations’ affordable warmth group reveals that households in our region pay about 40% more than the UK average for energy. To highlight the disparity further, daily standing charges for electricity in northern Scotland stand at 61.98p, compared with 41.59p in London. That, coupled with higher per-unit rates, translates to energy bills that burden our residents and, for many, make basic heating a struggle to afford.