Shetland Cab manager Della Armstrong and Citizens Advice Scotland chief executive Derek Mitchell<\/p>\n
Citizens Advice Scotland\u2019s boss has added his name to a list of people calling for reform of the energy market during a visited to the isles last week.<\/p>\n
The charity\u2019s chief executive Derek Mitchell also welcomed news from the independent regulator, Ofgem, that a new scheme would write off \u00a3500 million in debt.<\/p>\n
However that was just \u201ca drop in the ocean\u201d, Mr Mitchell said, despite it being a positive step.<\/p>\n
Speaking to The Shetland Times on Thursday, Mr Mitchell praised the work of the staff at the Shetland bureau in tackling the inequalities faced by islanders.<\/p>\n
The team at Lerwick\u2019s Market House has been dealing with a range of requests from clients.<\/p>\n
He heard how some people had been turning up with carrier bags filled with energy bills, while others had been asking about the radio teleswitch (RTS) changeover, as well as benefits and advice on housing and work.<\/p>\n
\u201cThese guys are the accident and emergency, the health service, they’re the fourth emergency service,\u201d Mr Mitchell said.<\/p>\n
Despite their vital role, Mr Mitchell said the bureaus were having to make do with a \u201cshoestring\u201d budget.<\/p>\n
Clients of the Shetland bureau benefited to the tune of almost \u00a32 million over the 2024\/25 financial year thanks to the work of the volunteers and paid staff of the charity.<\/p>\n
Volunteer Malcom Ferguson has been at the forefront of volunteering at the charity for 30 years.<\/p>\n
This milestone was celebrated at Cab\u2019s annual general meeting at the end of August.<\/p>\n
Mr Mitchell said it was a part of the \u201cincredible success\u201d story of the Shetland bureau.<\/p>\n
However, he said there were still problems and challenges to overcome.<\/p>\n
He said the RTS changeover had become a fiasco with more than 1,000 households yet to see their electricity system changed over to a smart meter.<\/p>\n
Shetland\u2019s harsher climate and shorter days meant households needed to spend more money just to keep warm.<\/p>\n
While smart meters are intended to help people keep on top of their bills, Mr Mitchell said the connectivity issues in Shetland meant the meters were less \u201csmart\u201d and more \u201cdumb\u201d with poor internet connections.<\/p>\n
Smart meters have become an issue for Shetlanders amid the RTS changeover.<\/p>\n
He said this could cause uncertainty for billpayers and potentially lead to inaccurate charges.<\/p>\n
Mr Mitchell said the average energy debt in Shetland was \u00a33,000.<\/p>\n
According to Shetland Cab\u2019s own annual report, one pensioner was paying around \u00a3280 every month.<\/p>\n
The report found this was because the smart meter installed in their home had failed to record an night reading, meaning the customer\u2019s bill had been estimated.<\/p>\n
Once Cab intervened, it emerged the pensioner was \u00a34,000 in credit.<\/p>\n
Last week Catriona Thomson told this newspaper she had been almost \u00a34,000 in credit but with her energy provider.<\/p>\n
Then after a week or two she received an update on an app which said she was \u00a33,000 in debt.<\/p>\n
Mr Mitchell said he has heard of many similar issues.<\/p>\n
And he said it was particularly troubling for for older people, who had been \u201cvery proud\u201d of the fact they had never been in debt.<\/p>\n
\u201cWe had a situation a few years ago, an old lady in Castlemilk, who, through no fault of her own, the energy company went bust,\u201d Mr Mitchell said.<\/p>\n
\u201cSo she was switched to the next energy company, and when she was switched she was told that she owed them \u00a33,000.\u201d<\/p>\n
The woman had been threatened to repay the money owed or the case would be passed to a debt collection company.<\/p>\n
Mr Mitchell said there was \u201cno proof\u201d the client was in debt. In fact, it was found the woman was \u00a32,000 in credit.<\/p>\n
It was \u201clucky\u201d the woman had been able to get access to her local Cab bureau.<\/p>\n
Shetland Cab manager Della Armstrong said there were likely to be \u201clots of people\u201d who would just pay that money.<\/p>\n
\u201cThey’ll just be ashamed of being in debt and owing money maybe for the first time in their life,\u201d Ms Armstrong said.<\/p>\n
\u201cThey could be paying thousands of pounds that they shouldn’t be paying, but we won’t know about that.\u201d<\/p>\n
On Thursday, regulator Ofgem announced that a final consultation on the first phase of its Debt Relief Scheme will be published shortly as part of its plans to help consumers and support suppliers to bring down \u00a34.4 billion of debt in the energy system.<\/p>\n
If approved, it would write off around \u00a3500 million in debt for 195,000 people.<\/p>\n
Mr Mitchell said it was \u201cgood news\u201d for some people.<\/p>\n
\u201cThat’s great [but] it’s a drop in the ocean,\u201d Mr Mitchell said.<\/p>\n
Mr Mitchell said the national energy debt was almost \u00a34.5 billion. This had risen by a quarter since Cab began speaking to Ofgem about a debt write-off scheme.<\/p>\n
He added: \u201cThe simple fact of the matter is that people’s energy needs are greater than their ability to pay for it.\u201d<\/p>\n