Our RIIO-T2 Business Plan Frank Mitchell, SP Energy Networks CEO: Our Draft RIIO-T2 business investment plans. October 2019 Update SP Transmission is proud to advise that we have today, 1st October 2019, submitted our second draft RIIO-T2 Transmission Business Plan to Ofgem’s Consumer Challenge Group. Our T2 Business Plan sets out how we plan to invest in our network and communities to facilitate Scotland and Britain’s transition to Net Zero by 2045 and 2050 respectively. But don’t just take my word for it, hear what the chair of our independent User Group, the Rt Hon. Charles Hendry has to say on our business planning process so far in the short video below: July 2019 Update In this rapidly changing energy landscape, your views and input are especially important. Read our July, first draft , ‘RIIO-T2’ Business Plan by clicking on the link below and be sure to provide us with any thoughts and feedback via our RIIO-T2 mailbox. SP Energy Networks RIIO-T2 Business Plan Our Draft Plan - 1st July 2019 Read our draft plan Submission Investment Overview Building on a solid track record of delivery in RIIO-T1, our continuing priority is to create a better future, quicker for consumers, network users and wider stakeholders, our environment, and for all electricity bill-payers across Britain. Urgent action is needed to across all sectors to mitigate the impacts of a global climate change emergency. The transmission network investment outlined in our plan facilitates the electricity sectors’ contribution to climate change prevention by readying our network for more renewables, the electrification of heat and transport, cost-saving innovation and local energy solutions for both central and Southern Scotland and Britain as a whole. To achieve our goals, we plan to invest around £1.4bn in the RIIO-T2 Price Control from 2021 to 2026. This vital investment will allow a further 1GW of renewable energy to connect on to our electricity networks and ensures our infrastructure (such as electricity towers, overhead wires and underground cables) can adapt to meet the changing demands being placed on the system as both the Scottish and UK Governments prepare for the transition to Net Zero. Fundamentally, our plan also guarantees that electricity users across Britain continue to receive a safe, reliable and efficient supply of electricity. Our draft RIIO-T2 Business Plans have been created in close consultation with consumers, network users, wider stakeholders and the independent RIIO-T2 User Group. It reflects a mindful approach to the balance needed between the investment required to maintain shareholder funding and investment (necessary to balance out the peaks in funding required during times of intense infrastructure upgrade and/or replacement) and the cost to the current consumer bills. This is especially the case now as, GB-wide, areas of ageing electricity network reaches end-of-life at the same time as it needs to be upgraded or swapped out for more environmentally sustainable and innovative infrastructure. Ensuring shareholder investment means that we can continue to spread the costs of investment across decades rather than years and socialise the cost of a net zero network across the generations – rather than expecting current bill-payers to foot the full bill now. What does this mean for GB electricity bill payers? Our share of a typical electricity bill will average £4.99 per annum in RIIO-T2. Continue to #ChallengeOurPlan Over the last two years, consumers, network users and wider stakeholders have played a critical role in shaping and challenging our draft Business Plan. We will continue to engage with all of our stakeholders over the next few weeks as we further refine our 2021-2026 investment plans ahead of submitting our final, RIIO-T2 Business Plan to Ofgem’s Consumer Challenge Group on 9th December 2019. Continue to have your say in shaping our plans by visiting the #ChallengeOurPlan section of the website. 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.