SP Energy Networks, part of the Scottish Power Group has today submitted its response to the Ofgem consultation on the draft determination for the electricity transmission price control RIIO-T2.
Frank Mitchell, CEO of SP Energy Networks, said: “We have submitted a robust and high quality plan, which offers a balance of low cost value for the consumer and innovative investment in our electricity transmission network that will upgrade it for the demands of Net Zero faster.
“Our plan is about speeding up investment and building the infrastructure needed for Net Zero now, rather than slowing down. Our T2 plans would inject a minimum of £1.4bn of investment into the UK over the next 5 years, and a further £1Bn to further accelerate the green recovery under the right conditions, creating massive job and supply chain opportunities and bringing more renewables generation onto the system to fuel the take-up of clean transport.
“The returns Ofgem has proposed in the RIIO-T2 Draft Determination are the lowest in UK history for this sector and well below those available against comparators who are competing to attract similar investment such as the US.
“We believe that OFGEM’s Draft Determination will not deliver the Green Economic Recovery at pace to support the UK and Scottish Governments’ ambitions to build and invest in response to the economic impact of COVID pandemic.
“The expenditure adjustments and nature of the uncertainty mechanisms proposed by Ofgem do not provide investors with confidence and will ultimately slow down the ability for new renewable generation to be connected, thus directly hindering government targets for Net Zero.
“As things stand, this is a missed opportunity to create job opportunities and wider economic benefits across the energy sector for the UK. We look forward to further discussions with OFGEM and look to reach a final settlement that creates jobs and supports Net Zero now.”
Read the full response on the SP Energy Networks website.