Consultation outcome

Hydro Benefit Replacement Scheme and Common Tariff Obligation: statutory review 2022

• From: Department for Business, Energy & Industrial Strategy
• Published: 29 July 2022
• Last updated: 16 January 2023 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read 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

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@beis.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

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

Published 29 July 2022
Last updated 16 January 2023 + show all updates

1. 16 January 2023

   Government response published.

2. 29 July 2022

   First published.