Perth-based SSE has been called on to cut its domestic electricity bills until 2023 by energy regulator Ofgem in price control negotiations.
The annual average household bill in the North of Scotland area, where electricity is produced by hydro power, should be reduced by £27.
The regulator has also proposed the average household bill should be reduced by £18 a year in the South of England area.
The figures come from price control framework negotiations to cover the eight years from April 1 2015.
The RIIO (Revenue=Incentives+ Innovation+Outputs) process is intended to balance the interests of customers with electricity generating companies who need to raise money to maintain the network.
SSEPD, the generator’s power and distribution division, had submitted a business plan proposing significant reductions in the distribution share of electricity bills and improvements in the standard of service for customers.
Ofgem’s final determination delivered yesterday proposed a real reduction in the distribution share of the average household bill in SSE’s North of Scotland and South of England network areas by the sums specified.
SSEPD said it is committed to delivering the improvements in customer service that it set out in its business plan.
A statement from the company continued: “Over the coming weeks SSEPD will carefully examine the detail of Ofgem’s final determination and assess whether it represents a fair balance for customers and investors.
“SSEPD has until early next year to complete its assessment of Ofgem’s final determination.”
Ofgem has set out plans for five out of the six companies that run Britain’s local electricity network, who will spend around £24 billion to renew, maintain the electricity network and connect small-scale renewable generation.
Ofgem also ordered two power generation firms to pay penalties totalling £39 million for their failure to deliver energy saving measures to low-income households.
The regulator secured a record £28m payment from North Yorkshire-based Drax Power for not meeting targets under the Government’s Community Energy Saving Programme.
Drax Power delivered just 37.1% of its carbon emissions reduction target, leading to several thousand households in some of the most deprived areas in Britain missing out on energy saving measures which would have helped lower bills.
Ofgem also handed a penalty of £11m to generator InterGen after it delivered 61.2% of its required energy saving measures to around 2,200 households by the end of May last year.
Ofgem is considering how the penalties can be used to benefit the consumers for whom the scheme was intended.