AAHEDC
Assistance for Areas with High Electricity Distribution Costs
Network ChargesA small p/kWh levy on all GB Elec suppliers that lowers distribution charges in the North of Scotland, where the network costs more to run per customer.
Section 184 of the Energy Act 2004 lets the government set up a scheme to support an area where distribution costs per customer are significantly higher than elsewhere in Great Britain. The North of Scotland, served by Scottish Hydro Electric Power Distribution (SHEPD), is the only area named. The scheme replaced an earlier arrangement called Hydro Benefit.
NESO recovers the assistance amount through a charge on all Elec suppliers and pays it to SHEPD, which must pass the benefit on to suppliers in its area. Customers in the North of Scotland see lower distribution charges, funded by a small charge spread across GB demand.
Key facts:
- One flat GB-wide rate in p/kWh, with no regional or time-of-day variation
- Charging year runs April to March
- NESO publishes the final tariff by 15 July, applied back to 1 April
- The tariff includes a separate Shetland element alongside the main assistance amount
- While a scheme is in force, the Act bars a scheme for any other area
EnergyCode validates AAHEDC and includes it in the Pricing Engine.
Example
2026-27 final tariff: 0.044269 p/kWh, of which 0.012766 p/kWh is the Shetland elementRelated terms
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