UK non-commodity charge · Transmission · Electricity
AAHEDC (Highlands and Islands assistance)
Latest published rate, who sets it, and where it is forecast to go.
What AAHEDC (Highlands and Islands assistance) is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
Roughly 0.2 to 0.5% of a typical UK business electricity bill
AAHEDC (Highlands and Islands assistance): what it is, who charges it, and what it pays for
What it is
The AAHEDC (Highlands and Islands assistance) charge in plain English
Subsidy for Northern Scotland where distribution costs are higher due to remote, low-density population. All GB consumers pay a tiny amount to keep Scottish Highland electricity affordable.
Introduced 2005 (Energy Act 2004, Section 184).
Who charges it
The body that sets the rate
NESO, approved by Ofgem. Published annually alongside TNUoS
Unit
p/kWh
Applies to
All electricity supplies in Great Britain
What it pays for
Where the revenue ends up
Reducing electricity costs in Northern Scotland (SSEN Hydro area)
Share of typical bill
0.2 to 0.5%
Assistance for Areas with High Electricity Distribution Costs is a small, uniform GB-wide levy supporting north of Scotland distribution; NESO charging notices put it at 0.2 to 0.5% of a typical bill.
Published rate history
| Financial year | Rate | Year on year | Source |
|---|---|---|---|
| 2020/21 | 0.0186p/kWh | - | Published |
| 2021/22 | 0.0404p/kWh | +117.3% | Published |
| 2022/23 | 0.0407p/kWh | +0.6% | Published |
| 2023/24 | 0.0420p/kWh | +3.4% | Published |
| 2024/25 | 0.0421p/kWh | +0.3% | Published |
| 2025/26 | 0.0410p/kWh | -2.8% | Published |
| 2026/27 | 0.0443p/kWh | +8.0% | NESO, AAHEDC tariff 2026/27 (final, 15 Jul 2026) |
Forecast trajectory
Forecasts from our non-commodity cost model. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2026 | - | 0.0442 | - | - | |
| 2026-27 | 0.0420 | 0.0442 | 0.0465 | high | Based on confirmed RIIO-ED2 investment plans and regulatory visibility |
| 2027 | - | 0.0451 | - | - | |
| 2027-28 | 0.0455 | 0.0481 | 0.0510 | high | Supported by specific RIIO-ED2 determinations and scheduled projects |
| 2028 | - | 0.0460 | - | - | |
| 2028-29 | 0.0475 | 0.0536 | 0.0595 | med | Peak investment period with known offshore wind connection projects |
| 2029 | - | 0.0469 | - | - | |
| 2029-30 | 0.0465 | 0.0521 | 0.0580 | med | RIIO-ED3 transition period with regulatory framework uncertainty |
| 2030 | - | 0.0478 | - | - | |
| 2030-31 | 0.0460 | 0.0567 | 0.0710 | low | Post-RIIO-ED2 period with unknown regulatory parameters |
| 2031 | - | 0.0488 | - | - | |
| 2031-32 | 0.0450 | 0.0587 | 0.0730 | low | Highly speculative due to unknown RIIO-ED3 framework |
| 2032 | - | 0.0498 | - | - | |
| 2032-33 | 0.0445 | 0.0579 | 0.0740 | low | Placeholder projection with compounding uncertainties |
| 2033 | - | 0.0508 | - | - | |
| 2033-34 | 0.0442 | 0.0585 | 0.0750 | low | Directional indicator only, awaiting RIIO-ED3 determinations |
| 2034 | - | 0.0518 | - | - | |
| 2034-35 | 0.0440 | 0.0591 | 0.0760 | low | Speculative conditions as regulatory framework unknown |
AAHEDC (Highlands and Islands assistance) FAQs
What is the AAHEDC (Highlands and Islands assistance) charge?
Subsidy for Northern Scotland where distribution costs are higher due to remote, low-density population. All GB consumers pay a tiny amount to keep Scottish Highland electricity affordable.
Who sets the AAHEDC (Highlands and Islands assistance) rate?
The AAHEDC (Highlands and Islands assistance) rate is set by NESO, approved by Ofgem. Published annually alongside TNUoS.
What does AAHEDC (Highlands and Islands assistance) pay for?
AAHEDC (Highlands and Islands assistance) revenue supports Reducing electricity costs in Northern Scotland (SSEN Hydro area).
What is the latest published AAHEDC (Highlands and Islands assistance) rate?
For 2026/27, the published AAHEDC (Highlands and Islands assistance) rate is 0.0443 p/kWh.
What is the AAHEDC (Highlands and Islands assistance) forecast?
Our latest forecast for 2027 is 0.0451 p/kWh.
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Rate data from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above; forecasts are modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity. Primary source