Sub­sidy helps to cut costs

The Press and Journal (Moray) - - NEWS -

Reg­u­la­tor Ofgem has a statu­tory role in pro­tect­ing vul­ner­a­ble con­sumers.

It has a par­tic­u­lar role to play in re­gions across the UK where there is a higher risk of fuel poverty, such as the High­lands.

Ofgem said the north of Scot­land net­work oper­a­tor re­ceives a cross-sub­sidy through the Hy­dro Ben­e­fit Re­place­ment Scheme, so cus­tomers face lower net­work charges than they other­wise would.

This sub­sidy is not met di­rectly from the hy­dro op­er­a­tors but is re­cov­ered from sup­pli­ers across Bri­tain through a charge added to all units of elec­tric­ity.

The cross-sub­sidy is around £41 per year per house­hold in north Scot­land.

For non-gas house­holds, the Fuel Poverty Net­work Ex­ten­sion Scheme of­fers fund­ing to­wards the cost of con­nect­ing to the gas net­work.

Be­tween 2016 and 2021 gas dis­tri­bu­tion com­pa­nies will have to de­liver 18% more of these con­nec­tions across the coun­try.

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