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Powering communities through RIIO-ED2

16 Jun 2023

The RIIO-ED2 regulatory price control for 2023-2028 is an important step on the road to net zero and throughout the past year SSEN Distribution worked to reach a settlement that balances the needs of customers and the environment.

The Final Determination published by Ofgem on 30 November 2022 quantified the outputs that need to be delivered and the funding (allowances) SSEN Distribution is provided to do so.

The resulting £3.6bn RIIO-ED2 business plan sees baseline allowances increasing by £300m from the Draft Determinations, representing a 22% increase in allowed expenditure compared to an equivalent period in RIIO-ED1.

The business plan was stakeholder-led, with more than 25,000 people having a say in its development. It opens the way for significant investment in the local network infrastructure that will accelerate decarbonisation of streets and homes; improve reliability and services for customers; and build the smart, flexible network of the future.

While the original plan contained 64 outputs, the Final Determination reduced the funding in the core plan by around 12%. This required a recalibration of what the business can deliver and further extensive engagement with affected stakeholders on the likely impacts.

This follow-up engagement included detail of Uncertainty Mechanisms (UMs) that will enable SSEN Distribution to further invest in the network to facilitate growing net zero ambitions.