Energy / Discounted electricity trial could be way into ‘Shetland tariff’, MP says
GOVERNMENT plans to tackle constraint payments to renewable energy companies could be a way to deliver a “Shetland tariff”, Northern Isles MP Alistair Carmichael has said.
The UK Government announced a new trial programme today (Tuesday) which would enable suppliers to offer households and businesses discounted electricity during periods of constraint.
This would allow more of the extra power to be used rather than wasted.
It comes with constraint payments to SSE – which owns the Viking Energy wind farm in Shetland – a continuing source of frustration for many in the community.
The energy giant was paid £2.5 million for energy not used at the wind farm in just January and February this year, with 245,655MWh discarded in that time.
That figure is more than what Shetland’s communities are paid for hosting the wind farm annually, with £2.2 million distributed each year.
There have been ongoing calls for a so-called Shetland energy tariff for years, which would give islanders discounted electricity for their proximity to the wind farm.
Carmichael has said the new government trial could be a way of delivering that.
“The announcement this morning of a trial of discounted energy rates for communities such as ours will be met – possibly – with some excitement,” he said.
“This could be a significant moment for the isles. We’ve been campaigning for years for an “isles tariff”, against the naysayers – and while the devil will be in the detail, it seems like this could be the way to deliver it.
“Tackling the scandal of constraint payments was the first issue I raised with Keir Starmer after he became Prime Minister in 2024.
“The Northern Isles generate enormous amounts of energy for this country and have some of the highest levels of fuel poverty, so we stand to gain significantly if this policy bears fruit.
“Whatever the final shape of this policy, what we need here is something that will make a meaningful dent in the cost of energy for households – that is the standard by which it will be judged.”
SNP election candidate Hannah Mary Goodlad meanwhile said she had been calling for a Shetland energy act throughout her campaign, adding: “I really enjoy it when Westminster catches up”.
“It’s good to see that the UK government is thinking along the same line,” she said.
“I really welcome this kind of thinking commercial short term – mid-term we need market reform – unhitching electricity from gas price.”
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