18th Oct 2019 08:50
(Alliance News) - UK energy regulator Ofgem on Friday published its final decision on electricity distribution funding requests, allowing GBP64 million of requests and denying approximately GBP258 million.
Approved requests include GBP16 million of funding for SSE PLC unit Scottish & Southern Energy Networks, to be used for diversions in order to electrify the Great Western Railway line.
However, Ofgem rejected Scottish & Southern Energy Networks' GBP30 million request for cable replacements at Pentland Firth East as it had not been "demonstrated the proposed solution is economic and efficient".
Shares in SSE were up 0.3% at 1,317.00 pence in London on Friday morning.
Ofgem sets four price controls: electricity transmission, gas transmission, gas distribution, and energy distribution. Controls for both transmission and for gas distribution run to 2021 from 2013 and electricity distribution runs to 2023 from 2015. These controls are known as RIIO-1.
The regulator is currently consulting on RIIO-2, the next set of price controls, to be introduced in 2021 when transmission and gas distribution controls expire.
By Anna Farley; [email protected]
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