Prime Minister agrees £2m SSE Viking energy constraint payment “not good enough”

Orkney and Shetland MP, Alistair Carmichael, has today called on the Prime Minister to “look seriously” at the need for an “islands tariff” to ensure proper benefit to communities with high fuel poverty hosting renewable energy developments. Speaking during Prime Minister’s Questions, Mr Carmichael cited frustrations around the Viking Energy windfarm in Shetland, which recently incurred a £2m constraint payment to operator SSE, not to generate electricity due to network limitations. 

The Prime Minister agreed that the state of constraint payments on the National Grid was “not good enough” and undertook to arrange a meeting between Mr Carmichael and the responsible minister on local concerns about energy bill fairness.

Speaking in the House, Mr Carmichael said:

“Last month, SSE, the operators of the new Viking Energy windfarm in Shetland, were paid £2m in order not to generate any electricity from it. Is there not something badly wrong with an energy market that pays big corporates not to produce electricity, while the people living amongst the turbines endure some of the highest levels of fuel poverty in the country?

“So will the Prime Minister and the government now look seriously at the idea of an “islands tariff”, so that island communities such as those represented by me and his honourable friend the Member from Na h-Eileanan an Iar may see some genuine benefit for their community from hosting renewable energy developments such as this?”

Responding, the Prime Minister Keir Starmer said:

“I thank him for raising this issue which is obviously a considerable concern for his constituents. The National Grid as he knows does balance the grid by occasionally requesting some generators to stop when there is not enough capacity on the network. That is not good enough. It is a problem that we are determined to fix as we go forward. I will make sure that the relevant minister does speak to him about the particular issue in his constituency.”

Reacting after the exchange, Mr Carmichael said:

“For years we have spoken about “community benefit” from local renewable energy developments.  The reality for Shetland is that the SSE payment to the community is more or less the same as SSE were paid not to generate last month. When we are talking about communities with some of the highest energy needs in the country that inequality of outcome simply will not cut it.

“If the new government’s ambitions on energy are matched by action then tackling these inequalities is essential. We need to see proper mechanisms to reward communities which are supporting the push to Net Zero and to end the disproportionate nature of fuel poverty in our islands – that is a point I shall be raising with ministers again in the coming weeks.”