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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Assistant Corporate Fraud Investigator

Durham County Council
£10,688 to £11,577 p.a. (Grade 5)
This is an exciting role, which will provide the right person with the opportunity to help grow and develop as part of the Council’s Corporate Fraud T Durham
Recuriter: Durham County Council

Registered Homes Manager - Long-Stay Children's Home

Durham County Council
Grade 14, £51,928 - £56,293 per annum
Registered Homes Manager, Long-Stay Children's Home   Salary
Recuriter: Durham County Council

Waking Nights Residential Worker

Durham County Council
Grade 5 £27,274 - £29,542 per annum (starting salary will consider experience relevant to the post)
As a Waking Nights Residential Worker, you will play a vital role in helping our children and young people feel safe, supported, and valued throughout Durham
Recuriter: Durham County Council

Class Teacher

Durham County Council
£32,916 - £51,048 + £2,787
Permanent Contract - Full Time - Required to start January 2027.   The Governors of Evergreen Primary School are delighted to invite applications for Newton Aycliffe
Recuriter: Durham County Council
Linkedin Banner