N Scotland Residents To Save £50m On Energy Bills

Residents in the north of Scotland could be set to save £50m a year on their energy bills, following the announcement of the Hydro Benefit Replacement Scheme.

The government initiative aims to help residents in the north of Scotland avoid the higher distribution costs associated with that part of the UK.

The decision follows a public call for comments on the scheme, which the government claims will provide a £36 reduction on an average electricity bill to the 690,000 domestic consumers in the north of Scotland.

The cost of the scheme will be paid for by all domestic and non-domestic consumers across Great Britain and will cost the average household less than £1 a year.

Energy Secretary Edward Davey said: "I'm delighted we've managed to keep this important support for households and businesses in the North of Scotland.

"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.

"Thanks to the size of the British energy market we have been able to spread that cost. It is another example of how Scotland benefits from being an integral part of a larger British market."

Secretary of State for Scotland Michael Moore said: "Today's announcement is good news for the North of Scotland. 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."

(IT/JP)