Public ‘positive’ about relaunched Wick heat scheme
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THE company which hopes to relaunch a controversial heating scheme in Wick next year is confident it will work.
“We anticipate no technical or financial problems with the system,” Ignis Energy director Craig Ibbetson told the Caithness Courier yesterday.
He said the critical factor is whether or not enough people sign a contract with Ignis to make the project viable.
Mr Ibbetson explained the company plans to lease the premises previously occupied by Caithness Heat and Power Ltd and has financial backing from the Ludgate Environmental Fund – a company based in London but registered in Jersey.
He said it has around £20 million to invest in such projects and Wick is one of them.
“They have agreed in principle to fund the scheme subject to the required number of people signing a contract with us,” stated Mr Ibbetson.
He also revealed that Ignis plans to invest £1m in a new wood-chip boiler with an Italian company which has built over 500 similar systems.
“We will also invest in new electricity production equipment once we take over while the existing oil boiler will be retained for emergency back-up,” said Mr Ibbetson.
“We and our funders have carried out extensive work on this project and have no issues from a technical or financial point of view. We believe it will be a viable operation if we can get enough local people to sign up with us,” he continued.
Mr Ibbetson, who was at a public meeting in Wick last Thursday night along with a representative from the Ludgate Environmental Fund and the Highland Council’s director of housing, Steve Barron, said the response from the public had been positive.
“A lot of people would like the scheme to continue,” he said.
Mr Ibbetson would not divulge how many of the 246 tenants and householders who were on the failed CHaP project have signed a new contract with Ignis. But he was encouraged by the reaction, although he stressed the company needs the tenants to sign the contract within a week.
“That is the critical thing now and we would urge people to do that,” he said. “We recognise that we are asking people to make a decision quite quickly.”
He said the company needs to know how many tenants wish to remain on the heating scheme. The Highland Council also has to know as those who do not sign up will get a conventional heating system installed.
“If people sign the agreement with us it does not mean they will lose the council’s reinstatement offer which runs until the end of December,” said Mr Ibbetson.
He acknowledged that concerns were raised by the public at the meeting in the Assembly Rooms. According to Mr Ibbetson, they were two issues – what would happen if the scheme fails and what would happen if the required number of people do not sign up.
He explained the project will not go ahead if there is not enough interest from tenants. If the scheme does not proceed there will still be an opportunity for households to get connected to a traditional heating system.
A Highland Council spokesman yesterday confirmed the local authority has made a reinstatement offer to tenants and other customers.
“This offer stands until the end of December. We intend to have completed all reinstatement work by the end of April 2012,” he said.
The spokesman dismissed a claim that the Highland Council gave money to Ignis to extend the heating scheme to Wick High School.
Tenants hear details of scheme
OVER 60 people heard about Ignis Energy’s plans at a meeting in the Assembly Rooms in Wick.
Director Craig Ibbetson explained how the company would convert the heating scheme from oil to wood-chip fuel after the Highland Council withdraws from operating it in April 2012.
“Our proposal is lower in cost than gas or electric heating and will avoid disruption in people’s houses caused by reinstatement of gas or electric heating,” he said.
The company is confident the scheme is viable and sustainable in the long term if a sufficient number of homes remain connected.
Ignis is offering customers a fixed weekly tariff or a meter. Both methods are cheaper than gas or electric heating, said Mr Ibbetson.
The fixed weekly tariff allows customers to use as much heat as they need. Customers who opt for the meter would only pay for what they use. Ignis and the council will conclude by December 31 if there are sufficient customers to continue operating the district heating scheme after April 2012.
Ignis was earmarked to take over the CHaP scheme from the Highland Council earlier this year but the local authority said the firm had “failed to achieve the conditions required for concluding an agreement” and decided not to award the contract.
