GV of Fort Augustus. Photograph by Colin Mearns 12 January 2024 For The Herald, see story by Caroline Wilson (Image: Colin Mearns)
The Renewables Obligation is levied only on electricity bills, not on gas.
The Highland Council area provides 5.5% of the UK installed capacity for renewables. Scottish Government data shows 33% of households are living in fuel poverty, the 2nd highest in Scotland following Na h-Eilean Siar (40%).
Mr MacDonald, Liberal Democrat MP for Inverness, Skye & West Ross-shire, said the cost of heating his Highland constituency office was four times higher per kwh than his Westminster based (24p compared with 6p).
He said: “Successive Governments imposed massive environmental tariffs on customers using UK-produced renewable electricity but far less on imported carbon-fuel mains gas.
Angus MacDonald (Image: Angus MacDonald)
“This is the main reason why those not on the grid, i.e. those living in rural Britain, pay a great deal more to heat their properties.
“Yes, renewable projects are important, but the huge environmental tariffs on our electricity bills are not fair.”
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The Prime Minister, Keir Starmer, acknowledged the imbalance and said that the Government was “exploring options to create a fairer system,” citing the expansion of the Warm Homes Discount and £33 billion investment from SSE.
Speaking after the exchange, Mr MacDonald said: “Families in rural areas are suffering because they use electricity which is far more expensive due largely to environmental taxes.
“It’s completely unjust that households in the Highlands are paying more for heating simply because they’re not on the gas grid.
“I will continue to put pressure on the Government and Ministers to make this change for people in rural communities.”
Mr MacDonald’s question follows a Liberal Democrat policy announcement in which the Party called for the Renewables Obligation to be removed from people’s electricity bills and instead be fully funded by tax revenue raised through a proposed windfall tax on the big banks.