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

Premises Lead

Essex County Council
£33711 - £39659 per annum
Visa sponsorship is not available for this role, so applicants must have current, unrestricted right to work in the UK.*Please note
Recuriter: Essex County Council

Chief Executive

Cheshire East Council
Competitive
You will lead an organisation with ambition, complexity and reach, while helping shape the future of a place Crewe, Cheshire
Recuriter: Cheshire East Council

Director of Family Help & Children’s Social Care

Cheshire East Council
Up to £123,477
To help drive this vision forward, we’re seeking an exceptional Director of Family Help & Children’s Social Care. Cheshire
Recuriter: Cheshire East Council

Deputy Director Children’s Services (Director of Children’s Social Care)

Devon County Council
Competitive
Lead with Purpose. Change Lives. Devon
Recuriter: Devon County Council
Linkedin Banner