Danny Alexander has welcomed deal to spread cost of Shetland electricity subsidy across UK.
Chief Secretary to the Treasury Danny Alexander has welcomed a deal that will save Highland consumers around £42 a year in their energy bills.
While on a surprise visit to Shetland, David Cameron announced a deal had been struck to spread the subsidy cost of providing electricity to the islands across the whole of the UK.
Last year, the extra cost of supplying electricity to the islands, which was paid for by consumers across the north, was £26.6million.
That cost will now be born by every UK household adding £1 a year to bills.
Without the subsidy the cost of electricity in the islands would have been 75% higher.
Mr Alexander said: “I’m delighted that people living in the Highlands may no longer have to bear all the extra costs of providing energy for Shetland.
“Shetland has contributed massively to the UK economy, so it’s only right that the broad shoulders of energy consumers across the whole of the UK help cover the additional costs.
“This measure is a superb example of how, by working together and sharing the burden, small communities can benefit from being part of a strong UK.”
New deal to save Islanders £42 per year in energy bills
