Our RIIO-T2 Business Plan Frank Mitchell, SP Energy Networks CEO: Our 2021 to 2026 Transmission Business Plan. December 2019 Update Our RIIO-T2 Business Plan offers a practical road map toward a cleaner, greener and healthier Britain. Within our plan and the supporting annexes published, you can find out exactly how we’ll facilitate Scotland and Britain’s transition to Net Zero by 2045 and 2050 respectively. We are excited to share our investment proposals and strategies with you as we submit them to Ofgem and the RIIO-T2 Challenge Group for further review. Download our RIIO-T2 Business Plan and watch the launch video In order to ensure our RIIO-T2 business plan was formed in the best interests of consumers, our network users and wider stakeholders, the SP Energy Networks Board have taken a proactive involvement in the creation and development of the plan from the outset. Our Board Assurance Statement outlines the confidence and certainty in our ambitious and efficient proposals. We have created two further documents to assist in your journey through our plan. Our Business Plan Summary document condenses the key areas of our plan in order to allow you a quick and easy overview. In addition, we have our Navigating our RIIO-T2 Business Plan document, created to help you navigate through our plan with an outline of some of the key elements. We have also have produced 36 supporting Annexes, which offer further detail and analysis on our overall plan – providing you with a further insight into the underpinning details. Accessibility options: Text transcript download our RIIO-T2 Business Plan For the best experience, please download the RIIO-T2 Business Plan by right-clicking on the link and selecting 'save as...', then opening the PDF file with Acrobat Reader. This will ensure that links from the Business Plan to the annex documents function as intended. Our Supplementary Business Plan As part of our submission to Ofgem, we have included an additional business plan, titled ‘Annex 34: Our Supplementary Business Plan’. Ofgem’s working assumptions, particularly around the Cost of Equity (CoE) are not aligned to our views. We have therefore provided our supplementary business plan which is based on our expectations and financial parameters. You can view this by visiting our Annex page and selecting Annex 34: Our Supplementary Business Plan. 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. Urgent action is needed across all sectors to mitigate the impacts of a global climate emergency. The transmission network investment outlined in our plan facilitates the electricity sector’s contribution to climate change prevention by readying our network for more renewables, the electrification of heat and transport, cost-saving innovation and energy solutions for both central and Southern Scotland and Britain as a whole. To achieve our goals, we plan to invest £1.375bn in the RIIO-T2 Price Control from 2021 to 2026 – an average of £275m across each year of the RIIO-T2 period. This vital investment will allow for at least 900MW of renewable generation to connect to our networks and ensures our infrastructure (such as transformers, overhead lines and underground cables) can adapt to meet the increasing demands being placed on the energy system. Fundamentally, our plan also ensures that we continue to provide electricity users across Britain with a safe, reliable and efficient supply of electricity. Our RIIO-T2 Business Plan has been created in close consultation with consumers, network users, wider stakeholders and the Independent Transmission User Group. It reflects a mindful approach to ensure a balance between necessary investment and the impact on consumer bills. This is especially important now as parts of the network reach end of life and have to be upgraded, or swapped out for more environmentally sustainable and innovative infrastructure. What does this mean for GB electricity bill payers? Through efficiency and innovation we have managed to reduce our expenditure levels compared to that of RIIO-T1. Our share of a typical electricity bill will average £4.43 per annum in RIIO-T2. We want you to #ChallengeOurPlan Over the last two years, consumers, network users and wider stakeholders have played a critical role in shaping and challenging our RIIO-T2 Business Plan. Continue to have your say via our RIIO-T2 mailbox or by visiting the #ChallengeOurPlan section of the website. You can also join the conversation on social media via #ChallengeOurPlan on LinkedIn and Twitter. Supporting Documentation & Additional Information Annexes In order to support our business plan, we have also provided an additional 36 Annexes, including our supplementary business plan, with further information and analysis on key areas. Navigating our RIIO-T2 Business Plan This document provides a user-friendly overview of the SPEN RIIO-T2 Business Plan. We’ve outlined key elements of the plan, how they’re structured and added some key guidance points to help you navigate through the document. Business Plan Summary This Business Plan Summary document acts as an overview of the key points of our plan as well as discussing our ambitions, challenges and financial projections for the RIIO-T2 period. Board Assurance Statement This document sets out the Board Assurance Statement for the plan and details why we are confident that the content and associated costs have been tested for accuracy, ambition and efficiency.