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SSE Response to Ofgem RIIO-ED2 Draft Determination

29 Jun 2022

Scottish and Southern Electricity Networks Distribution (SSEN Distribution), part of the SSE Group, notes today's publication of Ofgem's Draft Determination on its business plan for the RIIO-ED2 price control period.

Ofgem's initial determination is tough and stretching, and while it represents an increase of 18% on SSEN Distribution's equivalent allowances in RIIO-ED1 and recognises the innovation proposed through additional Customer Value Propositions, work is required to ensure the final settlement fully reflects customer and stakeholder needs.

This includes further refinement to properly allow for the necessary delivery of improvements in infrastructure and the deployment of technologies required to reach net zero and build network resilience in the context of climate change. SSEN Distribution also notes the proposed allowed cost of capital which it will continue to review against the context of prevailing market conditions.

This is the first step in the determination process and SSEN Distribution will now take time to review the full detail of the Draft Determination and constructively engage with Ofgem to ensure a progressive conclusion is reached in the interest of customers and other stakeholders at Final Determination later this year.

SSEN Distribution's RIIO-ED2 business plan has been co-created with over 25,000 stakeholders in SSE's largest ever engagement exercise. It is underpinned by extensive and robust evidence supporting the investment to deliver a network ready for net zero, drive progressive technological change and improve network resilience, with no planned increases to network charges on consumer bills.