Scotland business

Electricity bill cut for customers in north of Scotland

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Image caption It costs £18 million more a year to power the 23,000 homes in Shetland

Electricity bills for customers in the north of Scotland should drop by an average £17 a year under new plans to spread distribution costs.

Until now, customers in the north have shared the £18m extra cost of providing power in Shetland, which is not connected to the British grid.

That will rise to £27m to pay for upgrades to Lerwick's power station after its life was extended to 2025.

The UK energy minister said the amount would now be shared across the UK.

Total distribution costs to a typical customer in the north of Scotland, at £121 per year, are significantly ahead of the British average of £87.

A consultation has opened on the proposals to spread the charge across Britain from April 2020.

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