Laura Sharman 09 January 2014

Councils urged to learn from Highland power project ‘failure’

Audit Scotland has warned that councils should learn from the failings of the Highland power project, which landed the council with a £11.5m bill.

The Highlands Council set up Caithness Heat and Power as an arm’s length organisation (almo) in 2004, but had to take it back ownership in 2008 when it ran into major problems. Subsequent reports found ‘serious’ serious weaknesses in governance and accountability and failings in the way it was managed and structured.

In a new report published today, the Accounts Commission said the council had managed to reduce overall costs and reviewed its approach to almos. It said councils should learn from this project and ensure all new almos have ‘robust governance and accountability arrangements’ from the start.

Accounts Commission chair, Douglas Sinclair, said: ‘Arm’s length external organisations can be an option for delivering council services but only if the necessary safeguards are built in from the start.

‘Caithness Heat and Power was an example of how not to do this. Serious deficiencies in the governance of the project have led to significant loss of public money.

‘Highland Council has learned an expensive lesson but there are lessons for all councils to learn from this project.’

The project was originally set up as a community venture to provide wood-fired heat and hot water to homes in Wick.

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Rough Sleepers Specialist Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £52,767
Rough Sleepers Specialist Social Worker... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Saffron Centre for Young Musicians Support Assistant

Essex County Council
Up to £25081.00 per annum
Saffron Centre for Young Musicians Support AssistantPermanent, Part Time£25,081 per annumLocation
Recuriter: Essex County Council

Content Designer

Barnet London Borough Council
Grade J £48,003 - £53,172
This is an exciting time to join Barnet as we grow our Digital, Data and Technology (DDaT) capabilities London (Greater)
Recuriter: Barnet London Borough Council
Linkedin Banner