The Scottish Affairs Committee has also urged the UK Government to introduce a flat rate for electricity standing charges across the UK.
The UK Government’s target for the country to be fuelled by clean power by 2030 is “extremely ambitious”, a committee of MPs has warned.
The Scottish Affairs Committee also said local communities should receive larger benefits if renewable power projects are sited in their area, suggesting the Government should at least double its proposed level of community payments.
It also said there would be a “fairer system for consumers across Great Britain, including in Scotland” if standing charges for electricity were made the same across the country.
MPs noted that as it stands, Scotland has “higher-than-average standing charges”, with the charges in London said to be 31% cheaper than they are north of the border.
They made the calls in a report examining the UK Government’s Clean Power 2030 (CP30) plan.
The drive to fuel the UK by low-carbon energy is one of five national missions set out by Prime Minister Sir Keir Starmer, but MPs on the committee warned “the clean power by 2030 target is extremely ambitious”.
MPs added they “would suggest the Government must use all the levers it possesses if it is to achieve it”.
As part of this, they suggested GB Energy – the publicly-owned energy company set up by the Government – does more.
GB Energy was “billed as a key vehicle” in meeting the 2030 clean energy target, but in the MPs said: “If Great British Energy is to become the catalyst required to accelerate renewable generation and meet CP30, it must now move quickly beyond the initial start-up phase and scale up delivery.”
Noting that Scotland has more than 1,000 new renewable energy projects in the planning pipeline – with an estimated capacity of 83 gigawatts (GW) – the MPs said Scotland will be a “cornerstone of the UK’s clean power transition”.
But they added Scots currently have “higher-than-average standing charges” on their electricity bills, with this “largely reflecting the higher costs of transporting power to rural areas compared with large population centres”.
The MPs went on to note: “The burden of higher standing charges is particularly acute for Scotland’s remote and island communities, who also experience higher levels of fuel poverty and, in many cases, are bearing the brunt of the infrastructure required to deliver UK-wide clean power ambitions.
“This disparity risks undermining public confidence in the transition and exacerbating inequalities, particularly in the short-term, as increased infrastructure investment pushes up bills.”
To make a “fairer system”, the committee said the Government should “introduce a standing charge that applies consistently to all regions”.
While ministers have already promised that communities near renewable energy projects will benefit, the committee said the payments to local areas should be higher.
The UK Government has proposed a contribution of £5,000 per megawatt (MW) of installed capacity, but the MPs said payments of £10,000-£12,500 per MW “seem appropriate”.
They said they reached this conclusion after hearing from Highland Council “that £12,500 is a fair and proportionate level of compensation” as it “reflects the council’s first-hand experience of clean energy deployment, as well as the lived experience of communities currently impacted by renewables”.
Committee chairwoman Patricia Ferguson said: “Scotland will play a pivotal role in ensuring that the UK Government achieves its ambitions for clean power.
“For these missions to succeed, it’s crucial that communities – particularly those in rural and remote areas who have been asked to host new energy infrastructure – feel that the energy transition is being done with them, not to them.
“We’ve concluded that the Government’s proposed mandatory community benefits scheme doesn’t go far enough.
“Communities must receive fair compensation for shouldering the burden of the energy transition – especially when many are already experiencing fuel poverty.
“We’re also calling for the UK Government to take further action to support Scottish people during this transition, by introducing fairer, more consistent standing charges across the UK.”
A spokesperson for the Department for Energy Security and Net Zero said: “We have always been clear that communities hosting clean, homegrown power should directly benefit from it.
“That is why we are continuing to explore plans for mandatory benefits for those hosting energy infrastructure like onshore wind and solar farms, with communities deciding where funds go for their own specific area.”
