We welcome today’s announcement from Ofgem on its Framework Decision for the ED3 price control, and the clear direction it signals for distribution networks to be a critical enabler of a smarter and more resilient future energy system.
As highlighted by the National Infrastructure Commission, increased investment in local electricity distribution networks is vital to driving economic growth and prosperity in communities arising from the energy transition. SSE fully supports the shift to long-term planning and proactive investment, recognising this will be the best way to deliver an efficient transition at the lowest overall cost to consumers.
Today’s announcement is a good starting point, recognising there are many details to work through and key decisions to be made. We look forward to working with Ofgem to help shape this further and enable business plans that are investable, financeable, and support the necessary step-change in capital delivery.
SSEN Distribution's Managing Director, Chris Burchell says:
“Today’s framework decision represents a positive change in thinking from Ofgem, recognising the criticality of the five-year ED3 period in the context of long-term decarbonisation goals and the drive to meet changing customer needs to 2050.
“The move to a new, planned, proactive approach to investment will help deliver the most timely and efficient transition for consumers. At SSE, we’re already adopting this strategic approach to our own network planning and delivery.
“This is an early step in the ED3 process. It’s now important that the design of the regulatory mechanisms fully aligns to the ambition set out today, and helps support the delivery of a step-change in capital investment. We’ll continue to engage constructively with Ofgem in this process.”