Statutory Consultation to modify the RIIO-ED1 Price Control Financial Instruments for Shetland Extended Interim Energy Solution Costs
- Consultation status:
- Closed (with decision)
- Publication date:
- Closing date:
- Company:
- Western Power Distribution (East Midlands) Plc Western Power Distribution (South Wales) Plc Western Power Distribution (South West) Plc Western Power Distribution (West Midlands) Plc Electricity North West Limited Eastern Power Networks Plc London Power Networks Plc Northern Powergrid (Northeast) PLC Northern Powergrid (Yorkshire) Plc Scottish Hydro Electric Power Distribution Plc South Eastern Power Networks Plc Southern Electric Power Distribution Plc SP Distribution Plc SP Manweb Plc
- Industry sector:
- Distribution Network
- Related consultations:
- Costs of Extended Interim Energy Solution for Shetland
- Statutory consultation on proposed changes to Scottish Hydro Electric Power Distribution plc’s licence associated with the costs of the Extended Interim Energy Solution for Shetland from 2019/20 to 2022/23
Decision:
We are consulting on the following modifications to the ED1 Price Control Financial Model (the PCFM) and ED1 Price Control Financial Handbook (the Financial Handbook):
- The introduction of the three new Variable Values, UCSEFEC, UCSESPC and UCSEBC to allow SHEPD to recover the costs associated with the Extended Interim Energy Solution for Shetland from 2019/20 to 2022/23, along with the ex-ante cost allowances set out for each term.
The introduction of these new Variable Values in the Licence requires functional modifications to the PCFM as well as modifications to the Financial Handbook. The increase in ex-ante, variant cost allowances of £85.4 million will have an estimated allowed revenue impact of £24.1 million over the final four years of the RIIO-ED1 price control.
If having considered responses to this consultation, we decide to proceed with the modifications then we will seek to issue directions to this effect in August 2019. We intend for the related PCFM modifications to be reflected in the upcoming November 2019 Annual Iteration Process, setting allowed revenues for the year 2020/21.