McArthur: ‘Plans to spread energy costs good news for islands’

A new scheme, which includes plans to spread energy costs across customers throughout the UK, from April next year, could help people in Orkney save money on their electricity bills.

Responding to news of the scheme, titled Hydro Benefit Replacement Scheme and Common Tariff Obligation, Mr McArthur has said the plans could save consumers in the North of Scotland an average of £17 a year.

A review of the scheme has to be run every three years, with consultation currently underway. The schemes are designed to protect electricity consumers in the North of Scotland from high costs of distribution in their area. In 2018/19 this was done by providing an annual assistance amount of £61 million to consumers in the area, which Ofgem estimates is worth around £40 per household.

Mr McArthur said: “It is simply unfair for islanders to be surcharged when so many households in our island communities already experience the highest levels of fuel poverty anywhere in the country.

“If these plans are implemented, it will be good news for consumers across the highlands and islands. It’s also evidence of the benefits of pooling and sharing across the UK.”