Hydro Benefit Replacement Scheme to be retained

The UK government has confirmed the retention of two statutory schemes that aim to protect electricity consumers in the North of Scotland from the high costs associated with distributing electricity in the region. The schemes are the Hydro Benefit Replacement Scheme and the Common Tariff Obligation.

This outcome was announced in a response to consultation document, published on 13 February.

The original consultation ran from 12 July to 6 September 2019. Secondary legislation will also be taken forward to deliver GB-wide funding for the Shetland cross-subsidy through the Hydro Benefit Replacement Scheme.

The next review of the scheme is scheduled for 2022.

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Local Energy Matters: Scotland

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