Following careful consideration, ScottishPower has decided to accept Ofgem’s proposals for the electricity distribution price control for the five year period from 1 April 2010, covering the SP Distribution and SP Manweb network areas.
In a response to Ofgem, ScottishPower still expressed concern that the 4% headline rate of return is inadequate to encourage and stimulate the investment that the UK’s infrastructure requires. In addition, the Company does not view this rate of return to be consistent with the amount of investments required in order to support the delivery of the UK’s energy policy and EU carbon reduction targets, especially given the global competition for investment.
Frank Mitchell, Head of ScottishPower Energy Networks, said: “After looking at the proposals in detail as an overall package, the Company welcomes the system’s transparency and predictability, and believes that, by fully implementing Iberdrola’s global model for excellence, it will be able to achieve the level of return that the Group’s investors demand. This will require taking advantage of the opportunities included in a number of key areas within Ofgem's proposals in respect of making strong efficiency measures and through the incentives mechanisms."
ScottishPower will continue working with its customers, staff, key contractors and Ofgem to deliver a successful outcome for all parties over the next 5 years.
Media Information: Paul Ferguson, 0141 566 4515