Statement on RIIO-ED2 framework decision
Scottish and Southern Electricity Networks (SSEN) notes today's publication by Ofgem of its decision on the future RIIO-ED2 framework and will now assess the detail of this early but important step in the price control process.
To build on the progress made during RIIO-1, it is essential that the RIIO-ED2 price control strikes the right balance in providing an effective framework to drive a continued value-for-money service for customers, alongside creating a positive investment environment that is consistent with delivery of a net zero pathway.
The increased focus on decarbonisation in the ED2 framework is a welcome step and SSEN will continue to work closely with the regulator, industry and government to support the delivery of cost-effective solutions that work toward the UK’s net zero ambitions. This will include agreeing a robust and deliverable mechanism for enabling strategic network investment ahead of electric vehicle uptake and in ensuring an equitable transition to a smart, flexible and digitised network.
SSEN looks forward to an ongoing and open dialogue with Ofgem as it further develops its plans through the ED2 Working Groups scheduled for the new year, helping to ensure the framework is proportionate and effective, the evidence base is robust, and outcomes are clear. This will be undertaken alongside a comprehensive stakeholder consultation programme as part of the new enhanced engagement process.