Open consultation: Hydro Benefit Replacement Scheme and Common Tariff Obligation

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The government must review the Hydro Benefit Replacement Scheme and the Common Tariff Obligation every 3 years. These schemes help protect consumers in the North of Scotland from the high costs of electricity distribution in that area.

This consultation forms part of the review process, and we invite views from any interested parties on whether the schemes continue to meet their policy objectives and are operationally effective.

Views are also invited on a proposed mechanism to deliver a revised funding arrangement for the Shetland cross-subsidy from April 2020 onwards, which will have the effect of reducing electricity distribution costs for all consumers in the North of Scotland.

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