RAB Wilson highlights Tom Johnston’s role in persuading Churchill to pass a Bill to set up the North of Scotland Hydro Board. I wonder what Johnston would think if he were alive today?
In 1990 all these assets were privatised for a book value of £190 million. At that time they were producing the cheapest electricity in GB. They also operated within a Scottish grid system so they benefitted the Highlands and Scotland.
Then along came the global warming issue and a demand for investment in NEW renewable sources of electricity. A subsidy regime called Renewable Obligation Certificates was introduced in 2001 to encourage this new investment and in the consultation exercise new hydro stations of less than 5MW capacity were included.
However, dozens of stations built before 2000 and with a “declared net capacity” of less than 20MWs were accredited for subsidy and six stations were allowed to throttle back and “declare” a capacity of less than 20MWs to qualify. A total of more than 2.2 million ROCs have been issed — with a subsidy value of more than £1 billion, all passed on to the electricity consumer.
Nick Dekker
Cumbernauld
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