RIIO-T2 consultation launched by SP Energy Networks

The network operator wants customers’ views as it develops a plan which aims to ensure the security of electricity supply and meet government objectives to move to a low carbon economy.

SP Energy Networks (SPEN) is responsible for the transmission of electricity generated by power stations, windfarms and other renewable sources throughout central and southern Scotland. It owns and maintains a transmission network of more than 4000km of overhead and 320km of underground lines serving two million homes and businesses.

SPEN’s director of network planning and regulation, Scott Mathieson said: “Understanding how electricity demand and supply could evolve on our transmission network is a key factor in informing the need for reinforcement works and ultimately SP Energy Networks’ business plan.

“We have laid out a number of scenarios in our consultation document which demonstrate the uncertainty which exists around expected levels of demand and supply, especially in the long term.  These have been developed in collaboration with a wide range of stakeholders including national and local government as well as customers.

“But we need ongoing feedback from our stakeholders – both producers and consumers of electricity – to make sure our plans meet the needs of our customers.”

The consultation, which runs until 28 September, outlines the challenges the electricity network is facing including increasing consumer demand for electric vehicles and heat pumps as well as the increase in the number of new renewable energy generators looking to supply the transmission system with electricity.  It also outlines a number of scenarios of how best to invest to meet these challenges.

SPEN’s plans for future investment in the network will ultimately be submitted to the energy regulator Ofgem for final approval.

Ofgem sets network companies’ price controls, affecting how much can be invested, using a framework called RIIO (Revenues=Incentives+Innovation=Outputs). The current framework ends in 2021 and SPEN’s consultation is looking forward to RIIO T2, which will set the next price controls until 2026.

The consultation can be found here.

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