From:
Department for Business,
Energy & Industrial Strategy
Published
29 July 2022
Last updated
16 January 2023 — See all updates
This consultation has concluded
Download the full outcome
Hydro Benefit Replacement Scheme
and Common Tariff Obligation: 3-yearly review of statutory
schemes - government response to consultation
PDF, 277
KB, 14 pages
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Detail of outcome
The government has decided that the Hydro Benefit Replacement
Scheme and the Common Tariff Obligation will be retained, as they
perform a useful function in helping to protect consumers from
the inevitably higher costs of electricity distribution in the
North of Scotland.
The technical improvements to the funding arrangements of the
Hydro Benefit Replacement Review that were proposed in this
consultation are now being progressed through secondary
legislation to ensure readiness for the next charging year
starting in April 2023.
Detail of feedback received
The consultation received 9 responses from a range of interested
parties, including:
- the energy industry
- local authorities
- consumer representatives
- one person
Most respondents had a direct interest in electricity costs for
the North of Scotland.
All respondents supported some form of action to protect
electricity distribution consumers in the North of Scotland, and
the majority agreed that the Hydro Benefit Replacement Scheme and
Common Tariff Obligation should continue.
There was also general support for the government’s proposed
technical improvements to the funding arrangements of the Hydro
Benefit Replacement Scheme.
Original consultation Summary
We're seeking views on 2 statutory schemes which protect North of
Scotland consumers from the high costs of electricity
distribution in that area.
This consultation ran from
11:30am on 29 July 2022 to 11:45pm on 23 September 2022
Consultation description
The Hydro Benefit Replacement Scheme and Common Tariff Obligation
help protect consumers in the North of Scotland from the high
costs of electricity distribution in that area.
The government must review the schemes every 3 years, and this
consultation forms part of the review process.
We propose to retain both schemes in their current form, subject
to some minor technical improvements to the funding arrangements
of the Hydro Benefit Replacement Scheme.
We would like views from any interested parties on whether the
schemes continue to meet their policy objectives and are
operationally effective.
Read the BEIS consultation
privacy notice.
Documents
Hydro Benefit Replacement
Scheme and Common Tariff Obligation: 3-yearly review of statutory
schemes
PDF, 524
KB, 24 pages
