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SSEN Transmission submits Business Plan

Published by
Energy Global,

SSEN Transmission has submitted a Business Plan for the future of the north of Scotland electricity transmission system to the British energy regulator, Ofgem.

The Business Plan, titled 'A Network for Net Zero', covers the period from April 2021 to March 2026 and follows substantial consultation with national and local stakeholders as well as SSEN Transmission's independent expert RIIO-T2 User Group.

It aims to support both the UK and Scottish Governments' net zero emissions targets and meet the needs and expectations expressed by stakeholders through five clear goals:

  • Transport the renewable electricity that powers 10 million homes
  • Aim for 100% transmission network reliability for homes and businesses
  • Every connection delivered on time
  • One third reduction in greenhouse gas emissions
  • £100 million in efficiency savings from innovation

SSEN Transmission's Business Plan sets out its 'Certain View' of the next price control period, which makes a powerful investment case for a minimum total expenditure of £2.4 billion over the RIIO-T2 period. This investment is essential to maintain and grow the north of Scotland transmission network to meet the certain needs of current and future electricity generators and customers, delivering a clear pathway to net zero. This is an increase from the £2.2 billion Totex forecast in SSEN Transmission's draft Business Plan summer consultation.

It is anticipated additional investment will be required to deliver the transition to net zero, but this investment will only be released once there is certainty it is needed and therefore protecting bill-payers.

Throughout the RIIO-T2 period, SSEN Transmission intends to increase the number of its direct employees from around 500 to over 700, with significantly more jobs expected through SSEN Transmission's supply chain, supporting sustainable economic growth across the north of Scotland.

To deliver its plans, SSEN Transmission estimates its average cost to British consumers over the RIIO-T2 period will be around £7 a year.

As part of Ofgem's consideration of the final plan, the regulator will consult with stakeholders during 2020 before determining what level of investment should be taken forward from 2021 through to 2026.

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