96 per cent to be in fuel poverty
Kevin Craigens
A council study has found that 96 per cent of Shetlanders could be in fuel poverty next year.
As households could spend 10 per cent or more of its income on energy bills.
On Friday, Ofgem announced that the price cap will increase by £1,600 to £3,549 on 1st October.
By April, the SIC estimates the average energy cost for a Shetland household will be £10,300 – more than twice the UK average.
The SIC study estimates a household would need to earn more than £104,000 to stay out of fuel poverty.
As a result of the findings, council leader Emma Macdonald has written to Chancellor Nadhim Zahawi to highlight the predictions.
Ms Macdonald said: “Our islands have been at the heart of oil and gas activity for over forty years, yet our people have not seen the benefits of that in terms of a lower cost of fuel.
“Shetland has contributed, and will continue to contribute, significantly to UK energy exports, and yet people in our communities will struggle to heat their homes in the coming year.
“This is particularly ironic, given the continued development of offshore and onshore renewable energy production around Shetland.
“We are calling for UK government support to enable host communities to secure long-term community benefit arrangements, which could include access to low-cost energy for islanders.
“But we also need immediate government help to address rising energy costs, which will have such a damaging impact on those who live in Shetland.”
The study also found that 75 per cent would be in extreme poverty, spending 20 percent or more of annual income on fuel, by April 2023.
Scottish government definition of fuel poverty is calculated as being 10 per cent of household income after household costs have been deducted.
