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Question Time
SCOTTISH EXECUTIVE
Enterprise, Lifelong Learning and Transport
Hydro-electric Power
To ask the Scottish
Executive what action it has taken to encourage the development of
small-scale
hydro-electric schemes.
Murdo
Fraser (Mid Scotland and Fife) (Con):
To ask the Scottish Executive what action it has taken to encourage the
development of small-scale hydro-electric schemes. (S2O-6235)
The Deputy Minister
for Enterprise and Lifelong Learning (Allan Wilson):
New and existing hydro schemes below 20MW are eligible for support under the
renewables obligation in Scotland. Since the obligation was introduced we
have consented three small-scale hydro stations and a further three
proposals are being considered.
Murdo Fraser:
The minister may be aware that changes that are being proposed to the rating
system would have the effect of increasing the rateable values of
small-scale hydro schemes by including the value of renewables obligation
certificates as part of the rateable value. The impact of that would be to
increase substantially the rates bills for many such small schemes. Those
proposals apply only north of the border and will not affect hydro schemes
in England and Wales. Given the Executive's commitment to renewable energy,
will he undertake to examine the issue and bring forward proposals to try to
alleviate the impact of the changes on hydro schemes?
Allan Wilson:
The member is correct to point out that, in November 2003, the Minister for
Finance and Public Service Reform announced that from 1 April the practice
of setting rateable values or related formulas for certain industries would
be abolished. That means that the formerly prescribed industries, which
include the electricity industry, now have their valuations done
conventionally.
That means that all ratepayers are treated on the same basis and are valued
by an independent assessor. The industries affected now have a right of
appeal, which they did not have under the prescription regime.
I will certainly examine the impact of the change on the companies
concerned, but a transitional relief scheme that is attached to the change
will limit increases in rates bills for companies that are adversely
affected. That scheme is paid for by the companies that, in the short term,
might benefit from the process.
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