Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether her Department has made an assessment of the economic impact of Ofgem's current energy pricing structures on (a) businesses and (b) residents of the Scottish Highlands and Islands.

The setting of tariffs is a commercial matter for individual suppliers. Suppliers can decide how they structure their tariffs as long as they do not lead to households paying above the relevant maximums set by Ofgem under the price cap. There is no price cap for businesses.

To help protect North of Scotland consumers from high local electricity distribution costs, the Government’s Hydro Benefit Replacement Scheme provides an annual cross-subsidy of around £112m. It is funded via suppliers across GB, saving a typical North of Scotland household over £60 each year.