1st Jul 2021 10:46
(Alliance News) - SSE PLC on Thursday said its subsidiary plans to invest GBP4.1 billion in its network and services by 2028 to reach its sustainability goals.
The Perth, Scotland-based renewable energy company said its wholly owned subsidiary, Scottish and Southern Electricity Networks Distribution - or SSEN Distribution - has drawn up an "ambitious" business plan for 2023 to 2028 in response to government net zero targets and shareholder feedback.
SSE said SSEN Distribution 's plan includes a baseline investment of GBP4.1 billion over the five-year RIIO-ED2 period, an increase of about 35% on the same period in RIIO-ED1.
"This baseline investment could see the RAV of SSEN Distribution grow to over GBP6.0 billion by 2028," the company added.
Managing director of SSEN Distribution, Chris Burchell, said: "Our ambitious stakeholder-led plan provides the efficient investment today to meet the net zero challenge, while also keeping bills down for current bill payers. It is essential this is supported by agile regulatory framework that helps deliver a network where customers can switch to EVs and other net zero technologies with ease at a time they choose."
Shares in SSE were trading up 0.1% at 1,502.00 pence each in London on Thursday morning.
The energy company said that of this total investment, GBP400 million was allocated for improving customer service and digitalising systems.
Meanwhile, GBP2.2 billion is earmarked for improving the reliability and resilience of it's power network. With increased investment the company aims to reduce the frequency and duration of unplanned power interruptions by 20%, with the ultimate goal of reducing its carbon footprint by 35%, in line with a "1.5c science-based target".
A further GBP1b is designated for "strategic resilience" across SSEN Distribution's networks to move communities closer to net zero. This includes the delivery of an additional 2 gigawatts of network capacity, connections for another 1.3 million electric vehicles and 800,000 new heat pumps.
The company added that all spending, including GBP500 million in running costs, will be is subject to a built in 0.5% year-on-year efficiency saving.
SSE noted that SSEN Distribution submitted its draft plan to Ofgem's Independent Challenge Group on Thursday, with the final submission expected by December. Ofgem is expected to respond in spring 2022 and reach a final decision by December that year.
Also on Thursday, SSE disposed of its SSE Contracting Ltd business to European investor Aurelius Group for an enterprise value of GBP27.5 million.
According to Aurelius, SSE Contracting is: "one of the biggest mechanical and electrical contractors in the UK and Ireland providing mechanical, electrical, rail, street lighting and high voltage engineering services to install and maintain key infrastructure."
By Scarlett Butler; [email protected]
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