Homes and businesses in the north of Scotland are set to save around £50million a year on energy bills after the Government backed a scheme to help keep electricity distribution costs down.
The Hydro Benefit Replacement scheme has been renewed following a public call for comments on the Hydro Benefit Replacement scheme, run by the Government to help companies and homeowners.
The scheme, which is paid for by all energy customers across Britain, is reviewed every three years.
“I’m delighted we’ve managed to keep this important support for households and businesses in the North of Scotland,” said energy secretary Ed Davey.
“The beautiful but sparsely populated and rugged expanse of Northern Scotland means maintaining the electricity network costs much more than other parts of the UK and it is not fair that people from the area should have to shoulder the costs of this.”
The scheme will benefit around 690,000 domestic customers in the Aberdeen City, Aberdeenshire, Angus, Moray, Na h-Eilean, Dundee, Orkney, Shetland council areas, along with parts of Fife, Clackmannan, Stirling, West Dumbartonshire and Argyle and Bute. The scheme was backed by energy firms including E.On and Scottish Power.
UK energy customers pay less than £1 a year to cover the cost, which also provides benefits to 70,000 non-domestic customers across the region.
“Today’s announcement is good news for the North of Scotland,” said Scottish Secretary Michael Moore.
“It underlines that the UK Government is not only securing large investments in the flourishing Scottish energy industry but we are ensuring that Scottish consumers and businesses in places like Thurso, Ullapool and Wick are benefiting from spreading the costs of electricity bills across the whole of Britain’s large energy market.”
