Ofgem unlocks £28 billion investment to upgrade and expand the UK’s energy network
Ofgem has today (December 4) announced it will invest £28 billion to maintain and upgrade the UK’s energy networks, ensuring a safe, secure and resilient grid while expanding capacity to meet growing demand.
RIIO (Revenues = Incentives + Innovation + Outputs) is the framework Ofgem uses to ensure that the companies operating our gas and electricity networks have sufficient revenue and incentives to run and invest in networks that efficiently deliver what customers value.
The Final Determination for RIIO-3 follows an extensive review and consultation period on the business plans of Scotland’s two transmission operators, SSEN and SPEN.
The current electricity and gas transmission and gas distribution price controls (known as RIIO-2) end in March next year. RIIO-3 will run for five years, from April 2026 to March 2031.
Stephen McKellar, Head of Grid & Networks at Scottish Renewables, said:
“The price control announced by Ofgem comes at a crucial time for Scotland’s clean power ambitions putting us on course for a cleaner, more resilient energy future.
“Investing in our grid infrastructure now will accelerate our journey towards an energy network powered by home-grown clean electricity and protect consumers from future spikes in energy costs similar to the gas price crisis in 2022.
“Renewable energy is Scotland’s biggest economic opportunity and this £28 billion investment in the electricity network will drive economic growth bringing tens of thousands of new jobs and substantial benefits to local communities.
“Scottish Renewables will continue to work closely with industry, government and Ofgem to ensure this new price control is successfully implemented and supports the long-term ambitions for a future grid powered by renewable energy.”
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Notes to Editors