20th Dec 2006 12:30
Scottish & Southern Energy PLC20 December 2006 SCOTTISH AND SOUTHERN ENERGY PLC ELECTRICITY TRANSMISSION PRICE CONTROL REVIEW AND GAS DISTRIBUTION PRICE CONTROL REVIEW Scottish and Southern Energy plc ("SSE") has decided, on balance, to acceptOfgem's final proposals for electricity transmission price controls for 2007-12.In addition, Scotia Gas Networks ("SGN"), in which SSE has a 50% stake, hasdecided to accept Ofgem's final proposals for the gas distribution one-yearprice control for 2007-08. While the cost of capital in electricity transmission is disappointing, SSE hasconcluded, ultimately, that there is within Ofgem's detailed proposals for areassuch as capital and operational expenditure sufficient scope and incentive tosecure an acceptable level of revenue. SSE's acceptance of the proposals issubject to their being correctly reflected in licence modifications. As in electricity transmission, the cost of capital in gas distribution isdisappointing, and should not be seen as precedent for the forthcoming five-yearreview. Nevertheless, SGN's two networks have the highest P0 increases inrevenue among the eight gas distribution networks. The policy framework for'shrinkage' gas, pensions deficits and capital and replacement expenditure haveall been satisfactorily dealt with in the context of what is a one-year reviewperiod. SGN is now engaged in the preparations for the gas distribution pricecontrol review for 2008-13. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE