New lease of life for failed energy scheme
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A CONTROVERSIAL heating scheme is set to be relaunched in Wick next year.
That emerged this week after Ignis Energy bought equipment which previously belonged to Caithness Heat and Power Ltd.
Ignis Energy now hopes to continue to operate the heating scheme and expand it at a later date. The company had been earmarked to take over the CHaP scheme from the Highland Council earlier this year but the local authority decided Ignis "failed to achieve the conditions required for concluding an agreement" and decided not to award a contract.
At the time the council said the way forward was for houses to be reinstated with domestic heating and hot water systems. An assurance was given to the 246 tenants the service would continue until the alternative system is installed.
Some of the equipment from the failed CHaP scheme was recently put up for auction online and was bought by Ignis Energy.
Company director Craig Ibbetson said: "We are delighted that we have been able to purchase the pieces of plant that will enable us to continue to operate the district heating scheme beyond the council’s planned closure date of the end of April 2012.
"We plan to invest in new equipment in order to expand the heating system and recommence electricity production. This will have direct benefits to the local economy and create new skilled jobs in Caithness."
He said Ignis will convert the plant to use locally sourced wood chips as the fuel and plans to extend the heating scheme to other premises nearby.
Mr Ibbetson said Ignis wants all existing customers to sign a new agreement with the company before the end of the month.
"This is so we have a proper relationship with all of our customers. It is important that there is a contract for every home.
"Those homes that do not opt to sign a new contract with us should continue with the arrangements for reinstatement of domestic heating systems," he told the
John O’Groat Journal.
"We believe everyone who receives the district heating supply will want it to continue, as it remains substantially cheaper than any other form of heating.
"We will be contacting every customer in the next few days in order to provide more details about our offer and what they have to do if they want to continue to be customers after April next year."
Mr Ibbetson said Ignis will be holding a public meeting at the Assembly Rooms in Wick next Thursday night (November 24) at 7.30pm.
Roselyn MacDonald, who stays in Murchison Street with her husband, James, told the Groat she would be happy to sign up with Ignis.
"I would do so long as I knew that if anything went wrong with the system we would still be able to get our heating," she said.
Local Highland councillor Gail Ross yesterday said she would be "absolutely delighted" if Ignis could take over the scheme provided assurances could be given about the technology.
However, she stressed it would be up to the tenants to decide if they wanted to continue with the district heating scheme or to return to a more traditional system.
Mrs Ross said the householders would have until the end of the month to sign up with Ignis. "That is their decision," she said.
A spokeswoman for the Highland Council yesterday confirmed a letter has been sent to tenants and householders regarding the latest development. It states they have the option to sign a contract with Ignis Energy for heat and hot water under new terms and conditions.
But the letter also points out if that option is not taken up, mains gas can be installed in these homes. The council plans to cease the CHaP scheme by the end of April with all disconnections completed by then.
Anyone with any concerns is asked to contact the local housing office in the first instance.
Apology for misleading householders
WICK councillor Gail Ross yesterday apologised for a misleading statement she made in a letter to tenants.
Mrs Ross wrote to around 14 householders regarding the latest Ignis development suggesting they set up a residents’ committee to liaise with the company.
She described Ignis as "an internationally renowned company" but the councillor pointed out the remark was made as a result of a misunderstanding. Mrs Ross thought Ignis was already working with a proven technology in Denmark but later discovered it was just starting operations there.
"I would like to apologise if there was any misunderstanding regarding that statement," she said.
Mrs Ross said the tenants she contacted were not keen to form a residents’ committee and said they would prefer a public meeting to be held instead. Householders were "shocked" and "disgusted" when they learned Caithness Heat and Power, which cost around £14 million, was being scrapped.
They hit out earlier this year at the decision made by the Highland Council and CHaP and called on them to provide answers to what went wrong.
The council was initially involved in discussions with a company called Clearpower but was unable to reach an agreement and started discussions with the reserve preferred bidder, Ignis Energy Ltd.
But the local authority later decided not to give the company the contract.
It said Ignis failed to achieve the conditions required for concluding an agreement and the council, supported by the directors of CHaP, decided to terminate the procurement process and not to award a contract.
