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 08 August 2007
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Hydro-Benefit Replacement Scheme: Assistance For Areas With High Electricity Distribution Costs

A scheme to assist with the high costs of distributing electricity in the north of Scotland succeeded the long-running Hydro-benefit scheme whereby the generation business of Scottish and Southern Energy made payments to the distribution business to offset the high costs of distributing electricity in the area.  The scheme was abolished in December 2004 because it contravened European law.  Scottish and Southern Energy agreed however to continue the scheme on a voluntary basis until April 2005 when the Hydro-Benefit Replacement Scheme came into force.

Two consultations on the Order and detailed licence conditions were launched in October and December 2004.

The Hydro-benefit Replacement scheme came into force at the same time as BETTA on 1 April 2005.  The scheme will be reviewed in 2008, within 3 years of implementation.

© Crown copyright 2007