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Scottish energy consumers should not lose out as a result of European legislatio ...

Scottish energy consumers should not lose out as a result of European legislation UK Energy Minister Stephen Timms said recently. The cost of supplying electricity to the Highlands and Islands of Scotland means that the costs of energy distribution in northern Scotland is high compared to that of the rest of the UK. Consumers in the north of Scotland are currently protected by a distribution subsidy, provided by Scottish and Southern Energy (SSE), known as ‘hydro benefit’. The energy regulator Ofgem has been advised that the hydro benefit subsidy may not be compliant with EU legislation and has announced that it intends to remove hydro benefit, subject to consultation. The removal of this subsidy could have a significant repercussion on consumer bills in the north of Scotland. Stephen Timms said he recognised the potential problems and promised to investigate all avenues to protect consumers.
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