Leaked memo reveals watchdog and power firm are flouting law

TAXPAYERS could be lumbered with a large legal bill because Scotland's environment watchdog is allowing 200,000 tonnes of sewage sludge to be illegally burned in a polluting power station.

A secret Scottish Executive memo, leaked to the Sunday Herald, reveals that the Scottish Environment Protection Agency (Sepa) has made a deal that enables sludge to be incinerated at Longannet power station for four years, in breach of European law.

The memo, to the first minister Jack McConnell last year, warns that Scottish ministers risk being taken to court by the European Commission and landed with substantial costs as a result.

The revelations have provoked an angry response from environmentalists, who are demanding action from the incoming Scottish Executive. "Something really stinks about this whole situation, and it's not just the sewage," said Friends of the Earth Scotland.

Half of Scotland's sewage sludge - 50,000 tonnes a year - is burned alongside coal at Longannet, near Kincardine on the Firth of Forth. The plant, run by Scottish Power, has long topped Scotland's pollution league, belching out tens of thousands of tonnes of toxins.

The sludge is supplied by Scottish Water and turned into dried pellets at Scottish Power's Daldowie plant in Glasgow. Other sludge is spread on to land.

Sludge-burning at Longannet became embroiled in a high-court battle in 2004 after Sepa alleged emissions breached European pollution limits. This was denied by Scottish Power.

The argument hinged on whether the sludge pellets should be defined as waste under the European Waste Incineration Directive. The Court of Session in Edinburgh ruled the pellets were waste, and ordered Longannet to cease burning them by December 28, 2005.

But Scottish Power appealed the ruling and carried on incinerating sludge at Longannet. On April 13, 2006, the company was served with an enforcement notice by Sepa which, instead of requiring the burning to stop, insisted progress was made on building a new, less-polluting power plant to take the sludge.

ScottishPower has since applied for planning permission for the new plant to be built at Longannet. The original aim was to have it up and running in 2009, but that has now slipped to 2010.

The leaked memo to McConnell from a senior executive official explains the deal done by Sepa and Scottish Power. In exchange for Sepa allowing time for a plant to be built, the company would take no action on its legal appeal, and "drop it at an appropriate point", the memo said.

But this could "expose Scotland and the UK to infraction proceedings" from the European Commission, the memo warned. "We have discussed this course of action with Defra (Department for Environment, Food and Rural Affairs), who are supportive but emphasised that, should infraction proceedings be taken, Scotland would be liable for any costs."

Duncan McLaren, chief executive of Friends of the Earth Scotland, said: "This cosy little arrangement could end up costing the Scottish taxpayer many thousands of pounds."

He pointed out that Sepa and ScottishPower had known for seven years that burning the sewage was illegal. "Scotland deserves a modern sewage management system that recovers the nutrients and energy without putting health and the environment at risk. Sepa must drive that transition as fast as possible, not turn a blind eye to illegal practices."

Sepa denied collaborating with Scottish Power to break the law. The action it had taken requiring an update on progress with the new plant every three months was "appropriate and proportionate", said a Sepa spokeswoman.

"It is considered that presently there is not an environmentally better option to deal with the quantity of sludge involved. Sepa is continually monitoring that position and the operations of the site."

Scottish Power agreed that continued sludge-burning at Longannet was "the best practical environmental option for the immediate future".

A spokesman added: "The new plant, going through the planning process, will provide a long-term, secure and sustainable solution for the disposal of sewage while supplying green energy and helping meet renewable targets."