Zonal pricing would tackle ‘injustice’ over Highland energy costs, says Maree Todd
Maree Todd is urging the UK government to back a zonal pricing system for energy as a way of correcting a “long-standing injustice” for householders in the Highlands.
Zonal pricing would divide the electricity market into geographical zones, each with its own electricity price. Ms Todd says this mechanism would ensure that prices in each zone are influenced by local supply and demand as well as the capacity of the existing grid.
The SNP MSP for Caithness, Sutherland and Ross is pressing UK energy minister Michael Shanks on the issue against a backdrop of higher energy costs paid by Highland residents.
Ms Todd had previously written to Mr Shanks, the Labour MP for Rutherglen, on the subject of fuel poverty in Scotland.
In his reply, Mr Shanks told her: “I appreciate your comments about fuel poverty levels. As you know this is an area of policy devolved to the Scottish Government and, as such, I cannot comment on fuel poverty levels in Scotland.”
Ms Todd has written back saying: “I was surprised by your remarks that appeared to absolve you of responsibility for fuel poverty levels in Scotland. Given that only the UK government holds the regulatory powers to implement energy market reforms – an area directly under your ministerial responsibility – I believe this does fall within your remit.
“In fact, the UK government has the ability to significantly alleviate, or even eradicate, fuel poverty in the Highlands, should it choose to do so.
“Implementing zonal pricing would allow the UK government to correct a long-standing injustice and introduce fairness to an energy market that currently disadvantages the Highlands.”
Ms Todd pointed out that Octopus Energy has endorsed zonal pricing.
She added: “From making progress in tackling poor energy efficiency in homes to providing social security benefits to support families with their heating costs, the Scottish Government is doing everything within its limited powers to address fuel poverty levels in Scotland.
“However, given Labour has made cuts to the winter fuel payment, which has had an impact on the Scottish Government’s budget, along with the energy price cap set to rise by 10 per cent, I am deeply concerned that my constituents will be even further exposed to fuel poverty this winter.
“I hope that Michael Shanks will offer a more constructive response this time, recognising his role and capacity to drive meaningful change in the energy market and address the injustices within it which have the greatest impact on my constituents.”
In an interview with Holyrood magazine, Mr Shanks said: “We’ve made one significant budget decision around the winter fuel payment which so far has had absolutely no impact on the bottom line of the Scottish Government’s budget.
“The SNP are flailing around trying to find excuses for the fact they’re having to make incredibly tough decisions largely because of their own mismanagement… For 17 years we’ve been told it’s all Westminster’s fault – the public are absolutely fed up of it.”
