Scottish and Southern Electricity Networks Distribution (SSEN) notes today's release from Ofgem of its "Sector Specific Methodology Decision", which sets out the regulator's decisions on its methodology for the RIIO-ED2 price control, which runs from 2023-2028.
This five-year period will be crucial for meeting climate ambition and we welcome the recognition of the central role DNOs will play in delivering a net zero electricity system. We also support the strong alignment with recent policy announcements from the Committee on Climate Change and UK and Scottish Governments and the role of timely strategic investment to deliver on this ambition, which must be backed by a clear and effective regulatory environment.
We have always advocated the importance of helping communities achieve their net zero ambitions, and are already working with local, regional and devolved administrations to proactively facilitate plans for the future. We also recognise the need to limit our own impact on the environment and are making progress towards setting an ambitious science-based target, aligned with the Science Based Targets initiative (SBTi).
As we move to take on new Distribution System Operation (DSO) responsibilities, data and digitalisation will be key to unlocking benefits for consumers and wider society, further enabling innovation and the development of flexibility markets. Combined with efficient and timely investment in our network, the use of smart tools and technologies will help ensure we play our part in delivering our communities' ambitions.
We note that there are still documents to be published and look forward to receiving the updated business plan guidance early next year and working with Ofgem and other stakeholders to finalise the policy framework for ED2. This will be crucial in supporting the development of our business plan.
We will now consider the detail as we work, alongside stakeholders and consumers, to complete our draft business plan for submission in July 2021. We will continue to advocate constructively for a regulatory framework that meets the needs of current and future customers whilst also delivering the investment required to deliver a smart, flexible and equitable transition to net zero.