Matt Cole, Scottish Fuel Poverty Advisory Panel Chair, discusses the Panel’s work on rural and remote fuel poverty

What we found

In our workplan this 2024/2025 we committed to exploring the systemic impact of rural and remote fuel poverty. We have explored the evidence on energy usage, metering, debt and the transition to net zero in rural and remote Scotland. We’ve also talked to those at the frontline supporting those suffering fuel poverty in rural Scotland.

Rural homes have experienced the highest levels of fuel poverty in Scotland for decades. The evidence shows that rural homes are often harder to heat, have less (or no) access to the gas-grid, higher levels of electricity consumption, dependence on unregulated fuels and/or old meter types with barriers to replacing them, as well as high levels of debt. Island and other coastal communities also face the challenge of exposure to high winds and driving rain with its harmful effect on heating efficiency and the fabric of homes. There are some promising models of how community-focussed renewable energy generation in rural Scotland can help to mitigate fuel poverty, but the experience of most communities is that they play host to renewables while paying more to heat their homes.

What we heard

One of those with local knowledge I talked to was Kirsty MacLeod of Tighean Innse Gall. I asked her about what life is like for those struggling to keep their homes warm in the Western Isles. Kirsty’s worked in energy advice, on the frontline of fuel poverty action, with Tighean Innse Gall in Stornoway for the past 13 years. She’s seen first-hand the difficulties faced by people in rural communities. This extract from our discussion shows the lived experience of rural and remote communities struggling with the cost of energy and the consequences of the lack of equity in the energy system.

Discussion with Kirsty MacLeod, Energy Advice Manager at Tighean Innse Gall

How do people heat their homes in the Western Isles?

The majority of people[1] still heat their homes with oil and there’s a large number of people heating them with electricity as well, through storage heaters. We still have people using solid fuel, even as a secondary source of heat, as it’s quite common to have a stove in your property and use peat, coal or wood. Oil and storage heating are probably the main heating sources which can be expensive.

Only paying the new price cap amount of around £1,800 would be a dream for most people in the Western Isles. Lots of people are paying double that or even more. We have had some people coming to us saying they are paying £5-6,000 a year for their heating and that is with just a single income coming into the household.

What are the unique challenges of living on an island in the Western Isles?

One of the biggest things for a rural island location is weather – that isn’t taken into consideration as much as it should be, even the wind chill factor has an impact. I don’t think that message is being heard. I know a lot of work is being done on rural fuel poverty, but it feels like we are still looking at blanket approaches for funding schemes which don’t reflect the differences and challenges in rural communities such as access to fuel sources and the housing stock. We need an island proofing approach not a blanket approach.

I commented that this resonates with the Panel’s recent look at the fuel poverty funding landscape, and in particular the principle that funding to tackle fuel poverty should work flexibly and holistically to best meet household and area needs, avoiding a one-size-fits-all or fixed approach.

Ensuring the right core funding for energy advice services is also key and in rural areas, these services are vitally important.

The latest statistics show that 34% of people in Scotland are living in fuel poverty, and within this, 19.4% are living in extreme fuel poverty. Do these statistics for Scotland reflect your experience in the Western Isles?

The statistic we at Tighean Innse Gall quote is that 80% of people here are spending more than 10% of their income on heating their home. We think that is more realistic. We are seeing a lot more householders come to us looking for financial support to help pay for their heating, because of the loss of the Winter Fuel Payment and the withdrawal of the Home Heat Support Fund[2].

Citizens Advice Scotland reports that the average energy debt of people they see is around £2,500 but in accessible/remote rural areas it is around £3,130. Is that true for the Western Isles?

We do see quite a lot of people with a substantial amount of debt and that’s where the Home Heat Support Fund was a lifeline for many households. It enabled them to help clear that debt and put them back on kind of a level playing field which then meant we could help them set up direct debits. It was a massive loss to the Islands when that fund was withdrawn. During the 2023/2024 financial year, Citizens Advice and TIG supported homes gain access to £100,000 of funding and cleared debts of over £15,000.

With further price increases, debt is a real concern. People are really struggling.

As you say a lot of people are struggling in the Western Isles, but these areas also host and deliver lots of renewables’ infrastructure. What is your view on this?

People are frustrated by looking out of their windows and seeing these wind turbines that are producing all this electricity, but they aren’t benefitting. There is a lot of talk now of offshore wind coming, so we are going to see even more wind turbines. Renewable generation is happening on our doorstep, but we are facing the highest fuel costs.

I think we have to look at the energy market as a whole and how that cost is better spread and make sure that rural and island communities that do produce a lot of electricity see the benefits of it.

What are your thoughts on net zero?

I fear that in the Western Isles net zero is going to be prioritised over fuel poverty which unfortunately we have seen over the last few years. Living on an island we understand the drive towards net zero, but it can’t be at a detriment to fuel poverty.

I observed here that it shouldn’t be a competition, it shouldn’t be net zero versus fuel poverty. You would want the net zero intervention to also deliver fuel poverty benefits and vice versa.

What do you think the impact will be of the Radio Teleswitch Service[3] being turned off later this year?

The June deadline for the switch off is fast approaching. In the Western Isles we have 2,700 homes still on these meters, and we are hearing that when some people have phoned to get an appointment as recommended by Ofgem, they are told there isn’t an engineer in your area. Energy suppliers are nowhere near the target they should be at, and our concern is what is going to happen to these householders when the signal is switched off. What will happen to their heating systems and meters, and who is going to sort out any issues that may happen?

I commented on the Panel’s thinking here that what is needed is a clear plan in place in case there are people left without heating or hot water or malfunctioning systems. Just as with net zero, people mustn’t be left worse off, and the Panel, among others, such as Consumer Scotland, has recently urged Ofgem to set up an industry taskforce as matter of urgency.

What we concluded

The Panel has concluded that a bespoke approach to the structural disadvantage suffered by rural and remote areas is needed to tackle the fuel poverty these communities experience – the highest in Scotland.

This will require increased investment, including bringing in non-governmental funding. It will need a clear, focus-solutioned strategy and delivery plan to (at least):

Improve the energy efficiency of homes as well as to build new energy efficient homes whilst recognising the higher infrastructure costs to achieve this.
Core funding for, and expanded, locally-delivered energy advice services.
Regulation of alternative fuel sources to manage price volatility.
Scalable models for maximising local energy generation benefits.

Rural fuel poverty in remote and island communities is a unique challenge in Scotland and it is vital that the structural disadvantage of this rurality is recognised.

[1] According to TIG’s research on affordable warmth in the Western Isles, 48% of respondents had oil central heating and a further 31% used electric heating.

[2] The Home Heating Support Fund was a Scottish Government scheme administered by Advice Direct Scotland. Its purpose was to help those struggling with their energy bills. Funding for the Home Heating Support Fund was withdrawn in April 2024.

[3] A radio signal that allows electricity suppliers to change between different tariff rates on older meters.