SSE Response to Ofgem: RIIO-T2 Price Control

                                                                                SSE plc

SSE RESPONSE TO OFGEM DRAFT DETERMINATION OF RIIO-T2 PRICE CONTROL

Scottish and Southern Electricity Networks Transmission (SSEN Transmission), the wholly-owned subsidiary of SSE plc, is disappointed and deeply concerned by today's publication of Ofgem's Draft Determination for the RIIO-T2 price control period. 

Unfortunately, based on an initial assessment, SSEN Transmission believes the approach set out in Ofgem's Draft Determination fundamentally fails to deliver on net zero, inadequately reflects stakeholder and customer needs, and falls short in seeking to attract the significant investment required.

The Draft Determination, subject to an eight week formal consultation and ongoing dialogue, sets out Ofgem's initial view of SSEN Transmission's RIIO-T2 Business Plan, 'A Network for Net Zero'.

SSEN Transmission's Business Plan, co-created with stakeholders, is underpinned by a robust evidence base that demonstrates that the investments proposed, and associated outputs, are needed now to build a network for net zero whilst efficiently maintaining network reliability and security of supply.

SSEN Transmission will now consider the Draft Determination in detail over the coming weeks and will continue to seek to work constructively with the Government and Ofgem to address these issues during the consultation period.  However, if significant changes are not made in Ofgem's Final Determination in December, SSEN Transmission will be forced to keep all options open to secure an ambitious, fair and balanced price control settlement that meets the needs of all stakeholders.

Rob McDonald, Managing Director of Transmission, said:

"Whilst our stakeholder-endorsed and evidence-based business plan was in step with the Government's low carbon investment ambition, Ofgem's first pass at a settlement resembles a worrying return to austerity. Ofgem's Draft Determination is a barrier towards achieving net zero and damaging to the green economic recovery."

 "At present the draft settlement does not strike the right balance for all stakeholders and without significant changes during the consultation period, there is a real risk that the critical investment in Britain's electricity networks will be unnecessarily slowed down by an appeal process via the CMA, which is not in any stakeholders' interests".

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