McArthur calls for review of energy efficiency funding scheme

Orkney’s MSP Liam McArthur has called on the Scottish Government to review the operation of its area-based schemes for energy efficiency to ensure the use of funding available is maximised and avoid the current high levels of ‘underspend’ in some local authority areas.

The area-based schemes are designed to help local authorities in areas with high levels of fuel poverty to deliver energy efficiency programmes that can bring down energy bills. However, some councils report an underspend in the funding provided, while others – including OIC – consistently utilise their full allocation and have the potential to go further.

Speaking in the chamber following a statement from Cabinet Secretary Shirley-Anne Somerville, Mr McArthur said:

“Area based energy efficiency schemes have proven their worth and more funding for these, again, is welcome. Yet too often councils have insufficient notice of funding allocations, and some appear unable to spend what they are given.

“Orkney Islands Council has consistently made full use of the area-based funding available, in an area with the highest levels of fuel poverty in the country.

“So can I urge the government to review the scheme’s operation to ensure Councils get more notice or indeed multi-year funding, and that where there are risks of underspends, reallocation of funds can take place in a timely fashion?”

Commenting afterwards, Mr McArthur said:

“Orkney Islands Council has a strong track record of making good use of funding to improve energy efficiency in the islands. However, given the level of need locally, there’s no doubt more could and should be done in the interests of bringing down bills, helping keep homes warm while also reducing emissions.

“I know from my conversations with OIC and others involved in tackling fuel poverty in Orkney that there is an appetite to go further, particularly when it comes to the smaller isles. Unfortunately, at present, an estimated £60m of the allocated budget for these measures appears to be going unspent.

“Where councils are unable to make use of the funding available, this should be reallocated in time to allow those, such as OIC to do more. Given the impact that insulation and other energy efficiency measures can have in reducing bills for households, it is nobody’s interests for funding in this area to go unspent.

“The government needs to realise that a scheme with the potential to do so much good is currently being undermined by inefficiencies in the way it is operating. It’s time for an urgent review.”