Highland Council’s housing committee has spoken about the desperate situation facing many of its tenants as fuel bills soar.
This morning, energy regulator Ofgem lifted the price cap by more than 50%, prompting industry experts to warn of a ‘cost of living crisis’.
In Highland, and nationally, the rise will add up to £700 to annual fuel bills.
At today’s housing committee meeting, Brian Cameron, housing policy and investment manager, said the council will help as much as it can.
“I read the news this morning with a heavy heart,” said Mr Cameron. “This will immediately put households into fuel poverty and immediately hit household income.”
Mr Cameron said the fuel price rise is a national problem, with councils all over the UK facing similar challenges.
Perfect storm
In Highland, 33% of people live in fuel poverty – above the national average of 24%.
Unfortunately, the council finds itself in a perfect storm, literally and metaphorically.
Recent high winds and plummeting temperatures caused damage to council property and saw tenants struggle to keep their homes warm.
At the same time, the pandemic brought heating replacements and insulation projects to a halt until last April.
Many Highland tenants face high fuel bills due to poorly insulated homes and antiquated electric heating systems.
The council is now working its way through a huge backlog of work.
Today’s Housing Revenue Account capital report for committee puts the budget slippage at £8.6m. Heating and energy programmes account for £5.5m of that underspend.
Council bosses say the new Omicron variant compounded the problem, putting pressures on the supply chain and contractors.
There is a national shortage of meters, air source heat pumps and windows, while the Office of National Statistics say the price of timber has increased by 25%.
Mr Cameron reassured members that all works will be completed, and hopefully accelerated. He added that a huge number of tenants benefited from the government’s fuel support grant.
‘We seem totally powerless’
Councillor Raymond Bremner raised concern about Highland fuel bills during this morning’s committee meeting.
Speaking after committee, Mr Bremner said the Highlands faces an “ironic situation”:
“We are a massive producer of renewable energy, yet we have the highest energy consumption prices, one of the coldest climates in the country and a raising of the cap applied to energy companies’ ability to charge consumers.”
Mr Bremner says the issue needs a UK government response, and members have asked the council to write to the energy minister asking him to address it.
“As a council we seem totally powerless to affect change in this area,” he added. “It is hugely frustrating. We need our voice to be louder.”
