Assistance for Areas with High Electricity Distribution Costs was introduced by the Energy Act 2004. It replaces an earlier arrangement, commonly referred to as “Hydro Benefit”, which ended in January 2004 but continued on a voluntary basis until 31 March 2005. The North of Scotland is currently the only area specified to receive assistance.
National Grid recovers the assistance through a charge on all suppliers. This is passed on to Scottish Hydro Electric Power Distribution Ltd enabling distribution charges in the North of Scotland to be reduced.
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