Commitment to north energy users will 'barely scratch the surface'
Register for free to read more of the latest local news. It's easy and will only take a moment.
A pledge by the UK government to protect energy users in the north of Scotland has been challenged by local MSP Maree Todd, who fears it will "barely scratch the surface" in terms of keeping costs down.
Some £94.9 million of support will be provided through the continued Hydro Benefit Replacement Scheme (HBRS) and Common Tariff Obligation (CTO), which is automatically taken off bills.
The UK government announced this week that all households and businesses in the north of Scotland "will continue to receive protection from higher energy bills", with average savings of £60 to offset the higher costs of electricity distribution in the region.
This, it says, is in addition to savings offered through other schemes including the Energy Price Guarantee and Energy Bill Support Scheme.
However, Ms Todd expressed doubts about how much impact the scheme would have.
“Ongoing support during an escalating cost-of-living crisis is welcome but the effectiveness of the HBRS has to be questioned," the SNP MSP for Caithness, Sutherland and Ross said.
“In the north of Scotland we have long been subjected to considerably higher electricity distribution charges and the HBRS barely scratches the surface when it comes to mitigating these costs for businesses and households.
“The UK government would be better placed using the resources at its disposal to reform the market to ensure fair distribution charges across Scotland’s regions.
“With many of my constituents facing extreme fuel poverty this winter, we must not allow this announcement to distract from the root problem.”
Jamie Stone, the Liberal Democrat MP for Caithness, Sutherland and Easter Ross, said: "I welcome any move that recognises the fact that people and businesses in the far north face disproportionally crippling energy cost increases.
"However, I would like to see how this announcement really impacts on the large number of constituents who continue to contact me and my office about the struggle to make ends meet, even with this scheme already in place.
"Whether or not this problem is really being tackled is the light against which this announcement must be held."
The UK government introduced HBRS in 2005 to provide a cross-subsidy to reduce distribution charges in the north of Scotland. It says electricity distribution in the region is more costly than elsewhere "because of its unique geography, which presents challenges to electricity networks".
The scheme is funded by charges on all licensed electricity suppliers across Britain.
Graham Stuart, UK government minister for energy and climate, said: “The UK government is determined to protect energy users wherever we can and to ensure fairness when it comes to energy prices across the union.
“Therefore we are reaffirming our commitment to the Hydro Benefit Replacement Scheme and Common Tariff Obligation, which are vital tools for easing energy costs for those living in rural areas of the north of Scotland.
“Technical improvements are being brought forward. This will mean that funding charges are minimised without reducing assistance being offered.”
John Lamont, UK government minister for Scotland, said: “At a time when the cost of energy bills is on everyone’s minds, the UK government wants to see equality for users, whether you live in Sutherland or Sunderland.
“The continuation of this payment is good news for people in rural parts of northern Scotland, protecting households from the higher electricity distribution costs in certain areas.”
David Hilferty, social justice spokesperson for Citizens Advice Scotland, said: “We know consumers and businesses in the north of Scotland continue to face higher costs when it comes to energy, and extending this scheme and the associated protections is a welcome move. If anyone is worried about energy bills or costs generally they can seek free, impartial and confidential advice from the Citizens Advice network.”
