<p>The standing charge includes some electricity distribution costs, which vary regionally to reflect the different costs of maintaining and upgrading the distribution network in different regions. Unique geographic factors mean that electricity distribution costs are markedly higher in the North of Scotland than elsewhere in Great Britain. To protect consumers in the North of Scotland from these costs, the government reaffirmed its commitment in January 2023 to the Hydro Benefit Replacement Scheme. This government scheme provides an annual cross subsidy of over £90 million to reduce related charges in the region.</p>