Energy price crisis set to hammer Scottish islanders hardest

More than half of the population (57%) is set to be plunged into fuel poverty, according to Energy Action Scotland.

While they may be the worst case, the rest of the Scottish islands are also being subjected to even higher cost of living rises than the mainland.

Their plight has prompted calls for government help, amid predictions that businesses will fold and those remaining will be forced to raise prices even higher.

“The increases are going to have a massive impact and will affect businesses hugely as well as individuals,” said Grant Fulton, an independent councillor for Harris and South Lochs.

READ MORE: Energy crisis in Scotland: Fears for two-thirds of small businesses

He continued: “My partner has a catering van and we’re now paying £51 for a 19-kilo Calor gas canister as opposed to anything from £25 to £30 on the mainland. It was about £40 before which was high anyway, so it has gone up a lot.

“Petrol and diesel are about £1.80 – and the issue on the islands is that people are wholly reliant on their cars.

“We don’t have a train service and there is a very limited bus services outside areas like Stornoway.”

With the price of fuel higher on the islands, it means the UK Government’s 20% VAT is also proportionately higher.

Fulton predicted prices would go up at restaurants and hotels with hauliers’ extra fuel costs passed on to consumers.

“It’s going to be really difficult,” he said. “There are a whole host of reasons, but businesses are really going to suffer.”

He has been contacted by constituents very concerned about how they are going to cope with the energy price rises.

“There are people on very small pensions who are talking about 70% to 80% of their pension having to be used on heating,” said Fulton. “Lots of people are having to choose between heating and eating.”

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Pointing out that currently energy from renewables is pumped from the Western Isles to the mainland, Fulton believes the island’s natural resources should be used to combat the price rises.

He said: “Ideally we should have independent wind, tidal and wave energy to power local villages and towns – it’s not as if we don’t have enough wind up here.

“We need to use our natural resources to counter all these prices, and we also have to look at the buildings and be given more assistance for insulating and triple glazing.

“We have the solutions but we just need the governments to help us out and give us a boost and get things going.”

He said government help was needed not just for the Western Isles – but the rest of the Scottish Highlands and Islands too.

On Arran, businesses are looking at their higher bills with apprehension.

“I think businesses on the island will struggle,” said Lorna Gunaydi of the Old Byre Showroom and Cafe Thyme. “A lot might not be able to manage at all and have to close. Energy costs will make a big difference because they’re hiking up a great deal and we have no choice but to use it.”

As well as the rocketing energy costs, islanders have to pay extra carriage costs for goods brought on to the island.

“All the food prices have gone up, and we’ll try not to pass that on to the cafe customers, but at the end of the day, we have to make a living,” said Gunaydi.

The business is also being hit by duty charges as a result of Brexit.

“Supplies are all being affected and held up because all the customs and duty has to be paid before we get the goods now,” she said. “Deliveries are very sporadic and late and they’re blaming Brexit and all the regulations. It’s no use.”

Despite the rises, she is hopeful her business will weather the storm after opening a new shoe shop at the site.

“We’ve invested greatly in the new shop so it has to work,” said Gunaydi. “We spent three years building it and opened it as lockdown hit so the timing could not have been worse. It feels like you’re getting slapped from all directions.”

At the Auchrannie Resort in Brodick, electricity costs are expected to double to around £600,000 per year when its fixed-rate contract runs out in September.

“It’s quite frightening,” said projects director David Johnston. “Our current annual spend on electric alone is over £300,000 a year as we have the two hotels, 40-odd lodges, staff accommodation buildings, leisure clubs and restaurants. We’re fortunate that we’re on a fixed-rate contract until the end of September, but if the estimated rate goes ahead, we’re probably going to double that.

“We can’t afford to take that off the bottom line so we’ll need to pass it on to customers in some way unfortunately.

“Hopefully the market will settle down and things improve but without a doubt we’re going to have a rise.”

As well as growing crops and rearing cattle, Bellevue Farm on Arran has a farm tour business. Extra haulage costs to the island have to be absorbed and the price of fertiliser has soared to astronomical levels.

“Fertiliser prices have near on quadrupled from £250 to £300 to nearly £1000 per tonne if you can get it,” said Ailsa Currie, who combines her work with a role as one of Scotland’s Food Ambassadors.

The issue is that the farmers have to shell out without knowing if they will get a high enough return once the crops are grown.

“You’re really in the dark and just randomly buying this stuff in the hope that someone is willing to pay that difference,” she said. “If the sale price doesn’t go up enough we’re going to have a loss.

“Energy costs will definitely affect us and the price for seed barley haulage has doubled. The charge to get it here from the mainland has gone from £25 to £60 a tonne.

“It’s all extra costs.”