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Scotland's renewable energy subsidies will cost the Scottish consumer an extra 0.25% on electricity bills over the current financial year. The Scottish Renewables Levy was set by the Scottish Office in April to pay for premium priced contracts to renewable schemes under the country's first renewables order. The levy will be paid in the first instance by public electricity suppliers at 0.5% on electricity from fossil fuel sources. However, by the time the cost of the levy is passed through to customers' bills, the increase is reduced to half the levy rate since a sizeable proportion of consumers' electricity comes from nuclear and hydro sources.

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