Scottish government has no plans to introduce Shetland Energy Act

The Scottish government has confirmed it holds no plans to introduce a Shetland Energy Act, colliding directly with local political promises and re-igniting intense debates over island resource control, fuel poverty, and broader energy taxation across the United Kingdom. As regional leaders grapple with regulatory limitations, Westminster has separately moved forward with major tax and licensing overhauls affecting offshore production.

The controversy in Scotland centres on legislative goals championed by local representatives. According to reporting by the Shetland Times, the proposed Shetland Energy Act formed a central pillar of Hannah Mary Goodlad's election campaign. However, energy minister Stephen Gethins rejected the legislation in response to a parliamentary question raised by Tory Highlands and Islands MSP Tim Eagle. Mr Gethins pointed out that the Scottish administration is bound by reserved powers at Westminster, though he noted that the government's national islands plan seeks to ensure communities share in the value of the energy transition through refreshed good practice principles and consumer support.

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Critics and local campaigns argue the pledge has been sidelined. A local campaign group stated that the Scottish government's written parliamentary answer confirmed the rejection, raising sharp questions about how local planning powers and protections will be pursued. Ms Goodlad countered that the legislative vehicle is secondary to the pressing reality on the ground.

"Across Shetland, we have a broken energy system. We have a system that has socialised the cost of energy and privatised the profit."

Hannah Mary Goodlad, MSP, via Shetland Times

Ms Goodlad highlighted an ongoing regional grievance: residents in Shetland look out upon massive wind infrastructure while facing high domestic energy bills compared to other parts of the UK. While she acknowledged that energy remains reserved to Westminster and requires broader devolution, she maintains her focus on local ownership, control, and price stability.

Meanwhile, national energy policy is undergoing a simultaneous transformation at the federal level. According to reporting by the BBC, the UK government announced that the windfall tax on North Sea energy profits will conclude, prompting a consultation on a new tax regime triggered only during periods of exceptionally high prices or profits. Energy Secretary Ed Miliband emphasised that the North Sea remains central to Britain's clean energy future, even as the administration confirmed that new licences for oil and gas fields will not be approved.

The federal shift has triggered varied reactions across industry and labour groups. The US-based firm Apache announced plans to close its North Sea operations, citing the financial burden of the tax regime as uneconomic. Trade association Offshore Energies UK warned that past tax hikes risk stifling sector investment, while trade unions such as Unite stressed that green technology investments must precede any scaling back of fossil fuel work to protect skilled jobs.

Environmental organisations offered strong backing for the federal licensing ban. Greenpeace UK climate team leader Mel Evans described the step as worth celebrating in the face of volatile fossil fuel reliance. Uplift executive director Tessa Khan called the licensing restrictions long overdue, urging policymakers to direct clean energy investments straight into transition communities.

As the debate unfolds across Scottish local governance and UK-wide industrial strategy, watch for the outcomes of Westminster's ongoing tax consultation and further parliamentary pressure regarding regional energy powers.