Delivering consumer outcomes

SP Energy Networks. RIIO-T3 Business Plan Blog. This is how we deliver outcomes for consumers. Scott Mathieson - Director of Network Planning and Regulation.

Introduction

“We have a chance to shape a cleaner, greener future for us all.”

It’s an incredibly exciting time to be part of the energy revolution. At SP Energy Networks, we’re proud to be leading the way to a more sustainable future and focusing on decarbonisation to help reach this target. Our aim is to provide an energy network that can support the increased use of green technology. Our transmission network is essential in moving clean, green power from where it’s generated – to where it’s needed most. Connecting with our distribution network to power our homes, schools, businesses and vital services.

Throughout my career, I have experienced a number of pivotal moments in the energy industry, from the establishment of Government Net Zero & Wind generation targets to Glasgow hosting COP26 on our doorstep. And just in the last year alone, seeing the establishment of the National Energy System Operator (NESO), the creation of Mission Control and the action plan setting out a pathway to Clean Power 2030.

In my current role as Director of Network Planning & Regulation for SP Energy Networks, my responsibilities include Management, System Design & Planning, Process and System Development, Regulatory Economics, Governance and Reporting and Workforce Renewal.

I’m incredibly proud of my team who recently submitted our next Transmission Business Plan (RIIO-T3) to Ofgem. This plan outlines our proposals for investing £10.6billion in our transmission network, an investment which has far-reaching environmental and economic consequences for our society.

In this blog, I discuss how our plan meets the four strategic outcomes for consumers that we are targeting as the energy sector. I’d encourage you to read on to find out more or scroll to the end for top 3 key points. We have also launched an online consultation where you can share your views on our plan.

Our Transmission Network

Our transmission network in Central and Southern Scotland is part of a GB-wide grid that collects electricity generated from power stations, windfarms and various other sources, and transports it over long distances to millions of homes and businesses.

Our system is crucial to the delivery of the Scottish and UK Government’s renewable energy objectives due to our location in an area of outstanding renewable resource and the critical integration we provide with other transmission networks. We have a unique role in connecting renewable generation and bulk transfer of renewable energy.

Investment in our transmission network has far-reaching environmental and economic consequences for our society. It is a critical enabler of the low-carbon transition and its associated economic benefits including lower energy prices by 2030. Independent analysis by the Centre for Energy Policy at the University of Strathclyde has found that households across the UK would be better off by £46.78 per annum by 2030 and £60.21 per annum over the long term as a result of our investment.

Our investment is also essential to wider economic growth as all new or growing industrial and commercial customers have a high dependency on reliable electricity networks.

The value we deliver in society is far greater than the network investment itself.

It extends to supporting communities, protecting critical national infrastructure, job creation, collaborating with academia, managing uncertainty, as well as working in partnership with Government, Ofgem and other stakeholders.

Ofgem RIIO-3 Outcomes

For the RIIO-3 period (2026 – 2031), Ofgem has developed four overarching outcomes for consumers that business plans will be assessed by. In developing our business plan, we have ensured the inputs to our plan and outputs from it will meet these four strategic Net Zero outcomes for consumers that we are targeting as a sector. These are:

• Infrastructure - Infrastructure fit for a low - cost transition to Net Zero
• Resilience - Secure and resilient supplies
• Value - System efficiency and long-term value for money
• Service - High quality of service from regulated firms

Throughout our business plan, we have used these four badges to flag where projects or initiatives align with one or more of the four Net Zero outcomes.

INFRASTRUCTURE

We will increase the capability of our network to transport electricity by building more infrastructure, removing constraints and increasing the capacity of circuits. Our proposals will make a determined contribution towards Net Zero by enabling the connection and flow of more clean energy to our homes and businesses. We are aiming to connect 19GW of renewable generation in RIIO-T3 (2026 – 2031) compared with 11GW in RIIO-T2 (2021 – 2026). The near doubling of renewable generation we will connect over a five-year price control period represents a significant shift in the scale and pace of our plans.

Watch this short video to find out how we are investing in our network now to meet current and future needs:

RESILIENCE

This is a critical time for networks. Demand is changing, generation is evolving, and new threats are emerging during a phase of intense network development. We will operate and maintain our network to the highest standards whilst adapting to meet the challenges of extreme weather, cyber and physical threats. We will maintain our current level of network reliability at 99.9%.

Watch this short video to find out how we are creating an agile, resilient delivery capability:

VALUE

We will bring our long-standing expertise as we deliver at unprecedented scale and pace to create a network that will benefit generations to come, boost the economy, create jobs and resilience to threats. Our plan will create a long-term boost to jobs of 11,000+ and will generate long-term stimulus to GDP of £2billion. Making the crucial investment outlined in our plan now will drive a positive impact on stabilising and lowering consumer energy bills in the longer-term, versus where this investment isn’t carried out. The impact of our plans on the average domestic consumers energy bills will be an additional £6.47 per annum, and our plan will include year-on-year efficiencies to keep this impact proportionate.

Watch this short video to find out more about the value our plan delivers:

SERVICE

Network users and consumers will remain at the heart of our decision-making as we aim to listen and learn more from our stakeholders. We are committed to delivering on this and improving the quality of service across the full project lifecycle, measured through the quality of connections survey. We are now in the third year of the survey and will strive to further improve our score (8.3 / 10). We are also investing heavily, £94 million, in new data and digital solutions to enhance productivity, improve service provision and increase our capacity to deliver.

Watch this video to find out more about how we consider stakeholder views:

Stakeholder Engagement

The top 3 takeaways from this blog are:

• We have published our next Transmission Business Plan (RIIO-T3). This plan outlines our proposals for investing £10.6billion in our transmission network, in Central and Southern Scotland, from 2026 to 2031.
• Our plan aligns closely with Ofgem’s four Net Zero outcomes for consumers:
  • Infrastructure fit for a low-cost transition to Net Zero
  • Secure and resilient supplies
  • System efficiency and long-term value for money
  • High quality of service from regulated firms

If you have any enquiries about our RIIO-T3 Business Plan, please email us on riio-t3pmo@spenergynetworks.co.uk