Statement re CMA Provisional Findings

SSE plc

CMA Provisional Findings

11 August 2021

SSEN Transmission notes today's publication of the CMA's summary of its provisional determinations into SSEN Transmission's appeal against certain elements of Ofgem's RIIO-T2 price control settlement.

The full provisional determinations are expected to be released to appellants and interveners on Wednesday afternoon. This will be followed by a three-week consultation for the CMA to consider responses in advance of its final determinations, which are expected no later than 30 October 2021.

In its provisional determinations, the CMA has upheld appeals against the assumed 'Outperformance Wedge', and for changes to the Licence Modification Process.

However, the CMA's provisional decision has not upheld appeals on:

·    Ofgem's flawed Cost of Equity, which does not reflect the risks associated with the investment needed in electricity transmission to deliver net zero. It also differs from the approach recently adopted by the CMA for the water industry; or

·    Changes to how Transmission Network Use of System Charges are recovered and the associated risk to Transmission Owners of exposure to under-recovery.

SSEN Transmission will continue to engage constructively with the CMA in advance of its final decision in order to achieve a fair settlement that delivers for stakeholders and unlocks the investment required to deliver net zero.

ENQUIRIES:

Investors and Analysts       [email protected]                     +44(0)345 0760 530

Media                                   [email protected]             +44(0)345 0760 530                                                      

NOTES TO EDITORS:

SSEN Transmission, operating under licence held by Scottish Hydro Electric (SHE) Transmission plc, owns, operates and develops the high voltage electricity transmission system in the north of Scotland and remote islands. 

SSEN Transmission is a wholly owned subsidiary of SSE plc.