Finance and Modelling It is the role of our finance and modelling team to propose the Financing Plan for SP Transmission that is efficient and of course adheres to Ofgem policies laid out in the RIIO-T2 Sector Specific Methodology Decision document. This Financing Plan, which sits with in our overall RIIO-T2 Business Plan, has to be consistent with RIIO principles and also ensure finaceability at a comfortable, investment grade credit rating but no higher. We are funded through a mixture of loans and shareholder funding to the value of £2.3bn based on current prices. The shareholder component of this funding is in excess of 1bn shareholder funds. Scottish Power Transmission’s parent company recently increased its statutory shareholding in the company by £185m and the funds were used to reduce money owed by the company. This act of financial support is an example of our shareholders’ long-term commitment and support of its UK Transmission network assets. We will submit the specified Business Plan Data Tables and Price Control Financial Model to Ofgem ensuring they are complete, accurate and presented in accordance with Regulatory Instrument Guidance or “RIG”. The Financing Plan will also set out appropriate cashflows for the business and return to shareholders and we will continue to take the views of customers, investors and other stakeholders in to consideration in preparing our plan. This will include proposals for taxation and pensions. To support the process of assessing financeability we have engaged economic consultants and other guidance which we will clearly reference throughout our Financing Plan. It is the Transmission Operators responsibility to demonstrate that their financing plan is ‘efficient’ i.e. requiring no greater cash flow than is necessary to be ‘financeable’. Andrew Stanger RIIO-T2 Finance and Modelling Manager If you would like to be kept up-to-date with the latest information and our planned activities regarding RIIO-T2, you can register as a stakeholder and join our stakeholder online community. We also welcome your thoughts and feedback via our RIIO-T2 mailbox.