Critical investments

Transmission companies have identified a number of critical investments that may be required for the long term development of the electricity transmission system.

These projects are designed to  help facilitate the transition to a low carbon economy. Some of them are uncertain and complex, which means that it is not always possible or appropriate for us to decide whether to assign funding to these projects as part of the price control settlement. 

To accommodate this uncertainty and complexity, we have implemented a number of mechanisms for setting and monitoring funding arrangements for these critical investments outside of the price control review process. 

These mechanisms are:

  • Strategic Wider Works – this was introduced in 2013 as part of the RIIO-T1 price control and applies to any large investment projects (subject to eligibility criteria) for which funding had not been determined as part of the price control settlement
  • Transmission investment incentives – this was introduced in 2010 and applies to a number of projects designed to accommodate future generation and demand patterns in line with meeting the government's 2020 renewable energy and low carbon targets
  • Transmission Investment for Renewable Generation - was introduced in 2004 and applies to a number of projects designed to accommodate growth of onshore wind generation in Scotland.

Publications and updates

  • Published: 4th Mar 2009
  • Decisions
  • 1 Associated documents
This open letter sets out Ofgem's decision to consult on modifying Scottish Hydro-Electric Transmission Limited's price control allowance to enable it to fund the investment in the proposed connection to the Western Isles.

  • Published: 16th Sep 2008
  • Closed: 14th Oct 2008
  • Consultations & responses
  • 8 Associated documents
This open letter sets out Ofgem's response to a request from SHETL to modify its price control allowances to enable it to fund the investment in proposed connections to the Western Isles and Shetland.

  • Published: 18th Sep 2007
  • Agendas, minutes and presentations
  • 1 Associated documents
Connecting the Islands of Scotland - Meeting Notes from Workshop.

  • Published: 5th Jun 2007
  • Closed: 20th Jul 2007
  • Consultations & responses
  • 29 Associated documents
A consultation on connecting the islands of Scotland, asking for views by 20th of July 2007.