Latest news with #AlasdairAllan
The Herald Scotland
11 hours ago
- Business
- The Herald Scotland
Energy bills swollen by Scottish windfarm switch off costs
However, critics focused on the revelation that the Westminster administration planned to use £2.5bn allocated to the fledgling Great British Energy operation to fund work on a new generation of small modular nuclear reactors. SNP supporters slammed the move which they claimed would leave a big hole in the £8.3bn budget that GB Energy had promised would be used to support the development of technologies such as floating offshore wind and tidal energy. Keir Starmer decided to put the official headquarters of GB Energy in Aberdeen to mollify critics of his cabinet's decision to curb oil and gas activity. But the SNP Government has opposed North Sea field developments that could create thousands of jobs. It has pinned its hopes on the expansion of wind power, which acting climate change minister Alasdair Allan claimed recently could create thousands of high-quality jobs in support of a just transition from dependence on oil and gas. The number of renewables jobs created in Scotland, however, has fallen below expectations for years. READ MORE: Just transition furore reignited as SNP Government flounders Mr Allan put the onus on the UK Government to help accelerate windfarm development in Scotland by improving the support provided for developers under the flagship Contracts for Difference programme. Energy secretary Ed Miliband has held out the prospect that the budget for the forthcoming CfD allocation round will be much bigger than the £1.6bn set for the last one. The costs will be added to the bills of householders regardless of their income. But figures from the body that regulates the national energy system show bill payers have reason to be concerned about the wisdom of accelerating a programme that imposes costs on them that many can't afford. The National Energy System Operator revealed that the size of the bill it has to pay to deal with supply issues stemming from the fact that output from renewables such as windfarms is intermittent soared to £2.7bn in the latest year from £2.5bn in the preceding period. The balancing payments include amounts that NESO pays to compensate windfarm operators that are asked to constrain generation when there is insufficient demand. They also include payments made to operators of gas fired power stations to increase output when there is not enough wind power to meet energy requirements. READ MORE: Israeli-owned firm takes control of UK's biggest gas field NESO said the increase was driven by a rise in constraint costs and made clear that this was largely due to the fact that so much windfarm capacity has been added in Scotland although demand is much higher south of the border. 'Whilst payments to generators are distributed throughout the country the cause of cost is concentrated in Scotland,' it said. The organisation underlined the absurdity of the situation we find ourselves in after rushing to develop windfarms without ensuring the required infrastructure was in place to transport the power produced to where it is needed or to store it. The Seagreen windfarm off the Angus coast became fully operational in 2023 (Image: SSE) Noting that wind curtailment is currently a major driver of balancing costs, NESO said: 'This is because a large proportion of wind capacity in GB is connected in Scotland, which at present is a constrained region of the network. 'This means that when wind generation is high we must take actions to turn down wind output and turn on replacement energy in unconstrained regions to keep the system balanced.' The NESO report emphasises that the costs resulting from this situation fall on householders. In 2024/25 balancing charges added around £3 a month to a typical domestic electricity bill. That may not sound much but household bills are also inflated by other charges such as those related to CfDs and the Climate Change Levy. NESO's analysis indicates that developing more windfarms will make things worse for the time being. It warned: 'Balancing costs are expected to rise in the short term, reaching a peak of ~£8bn in 2030.' Part of the solution will involve a massive expansion of electricity transportation networks in the face of potential opposition from locals in areas affected and of storage facilities. However, energy giants such as SSE and Drax have made clear they will only make the hefty investment required to develop hydro storage facilities if the UK Government provides enough support for revenues to ensure they can generate strong returns. READ MORE: Scottish hydropower hopes fade amid threats to bumper projects This all means that power generation assets that can ensure the country can keep the lights on irrespective of weather conditions will be required for years. The case for SSE to be allowed to develop a new gas fired power station at Peterhead has been strengthened after the UK Government agreed to provide £200m initial development funding for the Acorn carbon capture scheme. This will take emissions from the plant for storage in depleted reservoirs in the North Sea. Friends of the Earth Scotland insists the Peterhead plant would be a climate disaster and has berated the Scottish Government for failing to properly interrogate SSE's assurances about related emissions. The organisation is bitterly opposed to plans for the Scottish carbon capture cluster which it reckons could be used to excuse continued production of oil and gas. The SNP Government, however, has spent years pressing UK ministers to fund the Scottish cluster, which could cost around £12bn to develop in full. Scottish Gas owner Centrica recently underlined the scale of expected demand for gas by agreeing a £20 billion deal to secure supplies from Norway until 2035. That deal may have been timely as oil and gas prices have soared in the wake of Israel launching attacks on Iran last week. READ MORE: SNP Government oil hypocrisy shocking amid Scottish jobs cull Against that backdrop it makes sense for the UK to maximise production of its own oil and gas. The case for investing in nuclear plants that can provide baseload power is also reinforced by concerns about the UK's dependence on imports of oil and gas. Nuclear plants take years to develop but could remain operational for decades. Add in the fact that work on a plant could create thousands of construction jobs and many more in the supply chain and it is little wonder the SNP Government is under pressure from trades unions to abandon its opposition to the development of nuclear power stations in Scotland.
STV News
22-04-2025
- Climate
- STV News
Two-fifths have cut food spending in face of rising energy bills
More than two-fifths of households are having to cut spending on food and other essentials as a result of rising energy bills, research has found. A third of households across Scotland are finding it difficult to afford their energy bills, the Scottish Climate Survey for 2024 revealed. More than half (51%) of those who rent their home are struggling with the cost, the research found, along with 49% of those in households whose income is less than £26,000 a year and 46% of disabled people. The research, published by the Scottish Government, added that 42% of households were 'having to cut back spending on food and other essentials as a result of the need to spend more on energy bills'. It noted that more than four-fifths (83%) of households have installed insulation in their properties, with loft insulation the most common. However, the Scottish Climate Survey 2024 added that the use of 'clean and renewable heating systems' was 'uncommon.' According to the report less 5% of households have a heat pump installed – with cost and a lack of interest said to be the main barriers given for not having such a system. The same survey also found that while an 'overwhelming majority' of households thought they were likely to be hit by storms, strong winds and heavy rain in the next five years, a smaller proportion had felt they were prepared for this. So, while 94% of households believe they are likely to experience storms and strong winds, only 59% of households feel they are prepared for this. Similarly, 92% of households thought they were likely to experience 'extremely heavy rain', but less than two thirds (64%) feel prepared for such weather. Here, the report noted that 'there was a gap between how likely households thought they were to experience storms and strong winds, extremely heavy rain, very low temperatures, snow and ice, and flooding, and how prepared they felt for these events'. And while almost three quarters (72%) feel that climate change is' an immediate and urgent problem' the research also revealed that 13% believe it is 'more of a problem for the future'. In addition, less than half (44%) think that the transition to net zero will improve the quality of life by 2045 – while 11% think it will make things worse. Acting climate action minister Alasdair Allan said: 'If we are to persuade people to back climate action wholeheartedly, we must speak not only of the costs and challenges but also demonstrate clear and direct household and community benefits where possible.' He added: 'Whilst the powers over energy price setting and regulation are reserved, we continue to prioritise support for the most vulnerable households through access to long-term, sustainable measures with our energy efficiency programmes. 'We are also calling on the UK Government to introduce targeted energy bill discounts to support those who need it most.' The minister stressed that 'Scotland is now halfway to net zero and continues to be ahead of the UK as a whole in delivering long-term emissions reductions'. However, he added: 'In order to reach our target, we need to work together more effectively, at all levels of Government and beyond – and the findings from this survey help demonstrate that Scots not only understand the seriousness of the climate crisis, but want to see action. 'That's why we will continue to drive climate action that is fair, ambitious and effective at addressing the scale of the emergency which faces us.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Telegraph
03-04-2025
- Business
- Telegraph
SNP abandons plan to force Scots to scrap their gas boilers
The SNP has abandoned its plan to force householders to scrap their gas boilers and install heat pumps after admitting that it was unaffordable. Alasdair Allan, the SNP's acting climate change minister, said a new Heat in Buildings Bill 'moves away from penalising individuals' who refused to get rid of gas-powered heating. Instead, he said targets would be established 'for government to reach', with ministers working to do 'everything within our power to reduce costs for people'. In an extraordinary U-turn on the SNP's previous stance, Dr Allan admitted that the cost of living crisis made it 'simply unaffordable' for many householders and businesses to 'make great changes in the near future' to their heating systems. The minister said the Bill would aim to decarbonise heating by 2045 but he provided no other deadline or timetable for the switch, or any costs. However, he said the legislation would introduce new powers to set minimum energy standards for properties 'as part of a plan to reduce greenhouse gas emissions caused by heating systems'. This included new regulations stating that all privately rented properties must have an energy performance certificate (EPC) rating of at least C. Under its original energy efficiency strategy, the Scottish Government aimed to phase out the need to install new or replacement fossil fuel boilers in off-grid properties from 2025, and from homes connected to the gas mains from 2030. A 'backstop' date of 2045 was set for all homes to use zero direct emissions heating systems, under the plan, which was unveiled when the SNP and the Greens were in coalition. But the plan appeared to land householders with the overwhelming bulk of the estimated £33 billion cost of decarbonising Scotland's buildings. The Scottish Government had previously admitted that the average cost of installing a heat pump was around £10,000, even before the recent surge in inflation. This was around four times the £2,500 cost of replacing a fossil fuel boiler. Meghan Gallacher, the Scottish Tories' shadow housing secretary, said: 'We repeatedly warned the Scottish Government that their Heat in Buildings Bill was a farce, but time and time again they dug in their heels and refused to listen.' She added: 'Today's rehashed Bill still provides no clarity on the costs to the public. 'Rather than continually setting net zero targets that they fail to meet, the SNP must finally outline a fair and affordable transition for hard-pressed, over-taxed Scots.' The Scottish Government will table the new version of the Bill this year, which they hope will gain Royal Assent before next May's Holyrood elections. Dr Allan insisted that setting a target to decarbonise heating would send a 'strong signal to homeowners, landlords and other building owners on the need to prepare for change'. However, he accepted the upfront costs customers have to pay for 'clean heating systems remain higher than those for fossil fuel systems'. Dr Allan said ministers had listened to concerns that the original plans risked 'burdening every individual householder with an overly onerous responsibility' as the country seeks to move away from fossil fuels. In a statement to MSPs at Holyrood, he said that the new approach 'moves away from penalising individuals and instead commits to collective action'. But Patrick Harvie, the Scottish Greens co-leader who unveiled the original plan to get rid of boilers, accused his former SNP colleagues of setting targets that were 'utterly meaningless without action and leadership'. He said the new Bill stripped 'out almost all of the serious policy measures', adding: 'This will keep more people stuck on gas, which is bad for our planet and will continue to punish people all across our country by forcing them to fork out while the fossil fuel companies post record profits.' Anna Gardiner, rural property policy adviser for landowners' group Scottish Land & Estates, praised the Scottish Government's 'more balanced approach'. But she added: 'We do, however, hold real concerns regarding the vagueness of approach on rental properties meeting EPC rating 'C'. 'While we support the ambition to improve energy efficiency in the rental sector, we need clear guidance and support mechanisms to ensure that property owners can meet these targets in a fair and practical way.'
Yahoo
25-03-2025
- Business
- Yahoo
Westminster urged to act to reduce energy bills for those in greatest need
UK ministers are being urged to deliver targeted help for those struggling with 'unaffordable' energy bills. Alasdair Allan, acting climate action minister in the Scottish Government, has written to the Labour Government at Westminster calling for a discounted rate to be introduced for those in greatest need across the UK. It comes after a working group set up by the Scottish Government to consider a 'social tariff' for energy prices published its recommendations. The group included energy firms EON, ScottishPower, Scottish Gas, EDF, Octopus and Ovo, as well as consumer bodies such as Citizens Advice Scotland and Advice Direct Scotland. Mr Allan said the report had shown 'cross-sector consensus on the way forward', as he called on the UK Government to act. The minister said the Scottish Government had 'worked very productively with energy providers and advice groups to come up with a deliverable scheme'. However he added: 'The fundamental levers to make a difference are with the UK Government. 'Existing one-off flat rate rebates are insufficient and are not a long-term solution, and the UK Government must urgently deliver a unit rate discount, with the level of discount proportionate to need. 'The outputs from our group must act as a foundation and mainstay of a revised strategy, providing a signal of intent and leadership by the UK Government in tackling fuel poverty at source.' In a letter to UK energy consumers minister Miatta Fahnbulleh, he said a social tariff – which could be 'perhaps better framed as targeted bill support' – is 'urgently needed to ensure that energy consumers are protected against high costs at source and can afford all of their energy needs'. He stressed high energy prices 'remain the single greatest driver of fuel poverty in Scotland', insisting previous action has not been enough to 'drive down stubbornly high fuel poverty rates'. The most recent figures show that in 2023, 861,000 households across Scotland – 34% of all households – were estimated to be in fuel poverty. That compares to the estimated 13% of households – some 3.17 million – in England that were believed to be affected by the problem. Calling for action, Mr Allan suggested the UK Government 'must urgently deliver' a unit rate discount on energy bills, adding the level of discount shoulder be 'proportionate to need'. He went on to suggest a 'sophisticated set of metrics should be developed' taking in factors such as household income, medical need, and rurality, with the discount then applied automatically to those who are eligible. Stressing the need for action, he told Ms Fahnbulleh: 'Only the UK Government has the power to legislate in respect of energy price setting and regulation.' Adding that 'addressing fuel poverty is a challenge shared across Great Britain', Mr Allan said the Scottish Government is committed to 'working closely' with Westminster on the issue 'to deliver reform as quickly as is practicable'. A Department for Energy Security and Net Zero spokesperson said: 'Everyone deserves to live in a warm, comfortable home. 'We have set out proposals to expand the warm home discount which would help almost three million more households in Britain, including almost one million with children, with support to pay their energy bills next winter. 'Only by sprinting to clean power by 2030 can the UK take back control of its energy and protect both family and national finances from fossil fuel price spikes.'
The Independent
25-03-2025
- Business
- The Independent
Westminster urged to act to reduce energy bills for those in greatest need
UK ministers are being urged to deliver targeted help for those struggling with 'unaffordable' energy bills. Alasdair Allan, acting climate action minister in the Scottish Government, has written to the Labour Government at Westminster calling for a discounted rate to be introduced for those in greatest need across the UK. It comes after a working group set up by the Scottish Government to consider a 'social tariff' for energy prices published its recommendations. The group included energy firms EON, ScottishPower, Scottish Gas, EDF, Octopus and Ovo, as well as consumer bodies such as Citizens Advice Scotland and Advice Direct Scotland. Mr Allan said the report had shown 'cross-sector consensus on the way forward', as he called on the UK Government to act. The minister said the Scottish Government had 'worked very productively with energy providers and advice groups to come up with a deliverable scheme'. However he added: 'The fundamental levers to make a difference are with the UK Government. 'Existing one-off flat rate rebates are insufficient and are not a long-term solution, and the UK Government must urgently deliver a unit rate discount, with the level of discount proportionate to need. 'The outputs from our group must act as a foundation and mainstay of a revised strategy, providing a signal of intent and leadership by the UK Government in tackling fuel poverty at source.' In a letter to UK energy consumers minister Miatta Fahnbulleh, he said a social tariff – which could be 'perhaps better framed as targeted bill support' – is 'urgently needed to ensure that energy consumers are protected against high costs at source and can afford all of their energy needs'. He stressed high energy prices 'remain the single greatest driver of fuel poverty in Scotland', insisting previous action has not been enough to 'drive down stubbornly high fuel poverty rates'. The most recent figures show that in 2023, 861,000 households across Scotland – 34% of all households – were estimated to be in fuel poverty. That compares to the estimated 13% of households – some 3.17 million – in England that were believed to be affected by the problem. Calling for action, Mr Allan suggested the UK Government 'must urgently deliver' a unit rate discount on energy bills, adding the level of discount shoulder be 'proportionate to need'. He went on to suggest a 'sophisticated set of metrics should be developed' taking in factors such as household income, medical need, and rurality, with the discount then applied automatically to those who are eligible. Stressing the need for action, he told Ms Fahnbulleh: 'Only the UK Government has the power to legislate in respect of energy price setting and regulation.' Adding that 'addressing fuel poverty is a challenge shared across Great Britain', Mr Allan said the Scottish Government is committed to 'working closely' with Westminster on the issue 'to deliver reform as quickly as is practicable'.
