<p>Electricity supplied to consumers in the North of Scotland region is produced by a range of generation types traded in a competitive market across GB. The electricity price paid by consumers in any given region is not therefore determined by the predominant generation type in that region.</p><br /><p>Ofgem does not regulate energy prices - these are set by energy suppliers in competition with each other and so matters relating to the pricing of tariffs are a matter for each individual company.</p><br /><p>Ofgem addressed the differences in electricity charges between regions at paragraph 2.5 of their recent report on ‘Regional Differences in Network Charges’. This stated that the differences observed are not a ‘surcharge’, but reflect the different network costs in the region when shared out between customers consuming energy in that area. They also saw “no compelling case” to change these arrangements, from a regulatory perspective.</p><br /><p>The report also noted that electricity distribution charges in the north of Scotland are already cross-subsidised to an extent through the Government’s Hydro Benefit Replacement Scheme. It is currently worth around £41 per annum per household in the north of Scotland, and means that consumers face lower network charges than they otherwise would.</p><br /><p>This report can be obtained at:</p><p><a href="https://www.ofgem.gov.uk/publications-and-updates/ofgem-report-regional-differences-network-charges" target="_blank">https://www.ofgem.gov.uk/publications-and-updates/ofgem-report-regional-differences-network-charges</a>.</p><br /> <br />