Dave Thompson MSP

Dave Thompson, SNP MSP for Skye, Lochaber and Badenoch, took the opportunity in Parliament today (04/02/15) to ask The Minister for Housing and Welfare, Margaret Burgess, if she would be responding to his energy survey which showed that 95% rejected the 2p surcharge and that nearly 99% of the 1,700 replies received, backed public ownership of electricity production and supply.

Commenting on this, Mr Thompson said, “I am pleased that the Scottish Government is taking the issue seriously and that the matter of high electricity pricing and charges has been raised with the Executive of the Office of Gas and Electricity Markets (OFGEM) and that the UK Secretary for State for Energy and Climate Change has been contacted.

The folk of Skye, Lochaber and Badenoch have spoken out overwhelmingly against the 2p surcharge, therefore the UK Government agency Ofgem, who regulate electricity pricing, must speed up their investigations into the matter, and set about ending the unfair charge applied to electricity customers in the Highlands and Islands”.

Notes:

Dave’s Exchange with the Minister is noted below:

Dave Thompson (Skye, Lochaber and Badenoch) (SNP):

The 2p per unit electricity surcharge in the Highlands and Islands contributes a fair bit to poverty in my constituency. Will the minister respond to my energy survey? It showed that 95 per cent rejected the 2p surcharge, and nearly 99 per cent of the 1,700 replies that I received backed public ownership of electricity production and supply.

Minister for Housing and Welfare: Margaret Burgess:

As I said in my previous answer, the Government is concerned about the level of energy bills throughout the country, and especially in the north of Scotland. Fergus Ewing has raised the issue of high electricity bills and charges with the chief executive of the Office of Gas and Electricity Markets, and he has written to the Secretary of State for Energy and Climate Change to highlight our concerns about the impact of the current charging arrangements and the apparent slow progress of Ofgem’s further investigation into the matter. We will continue to press for a timely and effective solution.

http://www.scottish.parliament.uk/parliamentarybusiness/28862.aspx?r=9764

Dave’s Energy Survey Resulted and Associated Press Release Noted Below:

Support for Taking Electricity Production and Supply Back into Public Ownership

Dave Thompson, SNP MSP for Skye, Lochaber and Badenoch has today published a Report on the findings of the energy survey he initiated to over 14,000 of his constituents over Christmas.

The survey asked a number of key questions, including whether or not residents think the 2p electricity surcharge is fair, whether they think everyone in the UK should pay the same rate, whether electricity companies should have social responsibility and whether or not electricity production and supply should be brought back into public ownership.

The results have shown that there is overwhelming support for taking electricity production and supply in Scotland back into public ownership and that there should be no energy surcharge applied on the basis of remoteness.

Commenting on this Mr Thompson said,

I am not surprised the inherent unfairness of the 2p energy surcharge applied to the Highlands has galvanised Skye, Lochaber and Badenoch to reject it to the tune of 95.2% respondents.

However, the big news is that of the 1,711 replies received - 98.7% stated that electricity production and supply should be brought back into public ownership.

This is a fascinating response and one that shows folk will only put up with big company profiteering for so long, and no doubt their belief is backed up by the unfair 2p energy surcharge currently applied to the energy rich north, which is nothing short of scandalous

Dave went on,

“I say to the UK Government and the Ofgem energy regulator that the people of Skye, Lochaber and Badenoch have spoken, charging the same rate irrespective of location is in their gift, so I urge them to abolish this unfair policy forthwith.

They should also take note that there is a quiet revolution for change emerging in the Highlands from those who wish to go further than abolishing the unfair charge by bringing electricity production and supply in Scotland into public ownership, a policy that I would wholeheartedly support, so that never again will we in the Highlands have to face the incredulity of being treated like second class energy consumers”.

Notes:

A copy of this this Report has been sent to the Prime Minister David Cameron, the First Minister, Nicola Sturgeon, the UK Chancellor of the Exchequer, George Osborne, the Scottish Cabinet Finance Secretary, John Swinney, the UK Secretary of State for Energy, Ed Davey the Scottish Energy Minister, Fergus Ewing, and Chief Secretary to the Treasury, Danny Alexander.

Fuel Survey Report Enclosed - Winter 14/15

Fuel Survey Report – Winter 14/15

By Dave Thompson SNP MSP for Skye, Lochaber and Badenoch Introduction

In the last few years my office has received a significant number of cases dealing with fuel poverty; some extremely distressing where, for example, a large part of a pension is going on electric heating. Often the anguish is exacerbated as it is occurring within a few miles of major renewable electricity generation projects such as hydro and wind.

In trying to find solutions to these cases I approached SSE Hydro and the UK Government over two years ago, and I was appalled when I learnt that despite the very large amounts of electricity generated in the Highlands and Islands subscribers here were charged a 2% surcharge because of their “remoteness”.

Unfortunately, the UK Government has been unmoving on this issue until very recently; I hope that this is not a cynical change driven by the impending UK General Election, as this issue should be above petty Party politics.

In order to bring home the depth of feeling on this issue I decided to undertake a survey of my constituents and the following report is the outcome of that survey.

Note: - following the report there are two Appendices attached:

Appendix 1 - Typical Comments

Appendix 2 – Survey Letter and Form Findings

1. Approximately 14,000 forms were sent out across the constituency of Skye, Lochaber and Badenoch, which in the east includes Aird, Loch Ness, Dingwall and the Black Isle. Only whole postcode areas could be polled as the cost of polling partial postcodes in the constituency is prohibitive. Unfortunately, the budget could not stretch to providing stamped return envelopes.

2. Despite the absence of stamped return envelopes the survey generated a 12.2% return rate with 1,711 replies (@ 23/1/15); this is a very high return rate and indicates the depth of feeling on the issue.

3. The primary question asking whether the 2% surcharge on Highlands and Islands electricity bills was justified and fair generated 1630 responses saying no it was not justified and was unfair (95.2%)

4. However of the rest of the respondents, the comments and other answers suggest 56 of these returns were actually in error, and the intention was the same as the majority above. Adding these back raised the unfair rate to 98.5%

5. Of the 15 returns that clearly stated the surcharge was justified the primary argument was that the charge should reflect the cost of supply and that the remoteness of the Highlands and Islands increased this cost.

6. 98.9% (1693) respondents thought that the price per unit of electricity should be the same across the whole country.

7. 98.7% of respondents agreed that electricity production and supply should be returned to public ownership.

8. The vast majority of responses included contact details; these represented 78.1% of the total returns.

9. Many respondents had been unaware of the surcharge and were appalled by it. Typical comments could be paraphrased as follows:

· “When Tom Johnston drove the development of Hydro in the Highlands he said, once the capital cost is recovered, Highlanders will have free electricity.

· “Surely in a fair society colder areas that need to use more electricity to heat homes should get a lower rate of charge

· “With the number of service issues we have, like power cuts, we should have to pay less.

· “Given we have the renewable plants, whether they are hydro dams or wind farms surely this loss of amenity should be compensated for by lower charges.

Conclusion

1. The overwhelming weight of opinion is that there should be no surcharge and that the price to all consumers should be the same irrespective of “remoteness”. This is especially true given the increasing levels of electricity generation in these “remote” areas.

2. There was also overwhelming support for generation and supply to be returned to public ownership.

3. Over and above the removal of the surcharge, Government should urgently seek to introduce a scheme to eradicate rural fuel poverty.

Dave Thompson MSP

Member for Skye Lochaber and Badenoch

26th Jan 2015

Appendix 1 Typical Comments

We live in a United Kingdom - something can only be united successfully if it is fair to all parties involved. Paying a surcharge for where we live is unfair and discriminatory. This is just one example of what is unfair in our "United Kingdom".

Much electricity is generated in Highlands, so there is no logic in a surcharge. In general, all "utilities" (including delivery charges) should be charged at one price (as with mail, telephone etc). But public ownership is not the answer!

I think all new houses should have solar panels as standard unless there is compelling evidence that they would be ineffective. The feed in tariff should be higher.

Bearing in mind that Tom Johnston (Secretary of State for Scotland) in the 1950s (the era of building Hydro Dams), promised the people of the Highlands that they would have the cheapest/greenest electricity in the UK. Does this questionnaire really have any bearing on UK politics on energy supply?

When Loch Luichart Dam was opened by Tom Johnston (Secretary of State for Scotland) he said that when it was paid for in 50 years’ time, electricity would be free.

…….high rate of fuel poverty in the Highlands and Islands and the difficulties in remedying it. The high tariff for electricity is adding insult to injury.

If anything, electricity supplies should be cheaper in the North of Scotland given that our winter conditions are longer and more severe; in much the same way as the North of Norway operates. This should be more especially as we are supplying a lion and disproportionate per capital amount of energy to the national grid.

This charge is even more galling given that living so far from the piped gas network, we are unable to take advantage of duel fuel discounts.

In the 1950s population in Highlands were told electricity from Hydro Electric Schemes would be too CHEAP to meter. In an attempt to get people to support Hydro Electric plans – many lost their homes and livelihoods as glens were flooded.

We need to support more community owned renewable generation.

No, only glad that fairness is being sought.

As we have the most renewables in the North we should be 2p cheaper than the rest of the UK.

In today’s society our reliance on a continuous power supply is extremely high. However in spite of over the top charges for power we are continually being put through the cycle of power cuts as soon as the weather misbehaves. More should be done to secure the power supply.

All power generation and distribution should be in state ownership.

Electricity charges should be proportional to costs.

The 2p surcharge is justified as “transmission cost” as the Highlands are in general remote. The Government, Scottish or UK, should be taking steps to relieve those who genuinely cannot afford fuel and help to make buildings fuel efficient.

This is a ridiculous questionnaire, clearly loaded to give you the result you want. In any event the SNP are a bit tardy on this topic with Danny Alexander up to speed and making all the right noises in all the right places.

I would like to see a similar survey about subsidising wind farms that blight the Highlands – or the Beauly-Denny line. Why is public opinion ignored on these issues but valid on this one?

Appendix 2 Survey Letter and Form

Dave Thompson head and shoulders

Dave Thompson MSP

Skye, Lochaber & Badenoch

December 2014

Our Ref: DT/DD/789/14

Dear Constituent

Electricity Prices - Survey

As you may know, in the Highlands and Islands of Scotland, people pay more for their electricity. We currently pay a 2p surcharge per unit of electricity because of our apparent remoteness, despite the fact that much electricity is produced here.

The UK Government operates a single electricity market, through a national grid and, therefore, I believe that everyone should pay the same for their electricity, no matter where they live in the UK.

The UK Government has laid down rules, enforced by the regulator, OFGEM, which leads to these higher charges and I want to get the UK Government to change these rules.

I shall, therefore, be obliged if you will answer the questions overleaf and return this survey in the enclosed envelope, to which you will need to attach a stamp and return it to me by Friday 16th January 2015.

I wanted to reach as many people as possible with this survey but unfortunately, due to budget constraints I can only reach around 13,000 households (out of 40,000) and am unable to provide a freepost envelope.

I look forward to hearing your views on this important issue.

Yours sincerely

Dave Thompson

MSP for Skye, Lochaber and Badenoch (SNP)

 

Electricity Prices - Survey

1. Do you think that the 2p electricity surcharge paid by residents of the Highlands and Islands is a fair extra charge?

Yes

No

Don’t Know

2. Given that the UK Government operates a single electricity market across the UK, do you think that everyone in the UK should pay the same price for a unit of electricity?

Yes

No

Don’t Know

3. For many years the publicly owned Hydro Board supplied our electricity. Do you think that electricity production and supply should be brought back into public ownership in Scotland?

Yes

No

Don’t Know

4. If electricity production and supply remain with the private sector, do you think that the electricity companies should have a strong social responsibility role to ensure fairness to all electricity consumers?

Yes

No

Don’t Know

5. Do you have any other comments?

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If you are happy to, please complete the section below, giving us your contact details. The personal data provided in this survey is to inform my parliamentary work and will not be shared with third parties including campaign or political organisations.

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Addre……………………………………………………………………………………………………………………………

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