Decision to revise allowed expenditure for Subsea Cable Costs
Decision
Publication date
Company
Industry sector
Distribution Network
Licence type
Electricity Distribution Licence
Ofgem introduced a number of uncertainty mechanisms for costs that were uncertain at the time of establishing the first RIIO electricity distribution price control (RIIO-ED1), which runs from 1 April 2015 to 31 March 2023. This includes re-opener mechanisms, which enable adjustments (up or down) to electricity distribution network operators’ allowances to accommodate costs associated with specific uncertain cost categories.
We consulted on our minded to position to make a positive adjustment to Scottish Hydro Electric Power Distribution (SHEPD) allowance Subsea Cable Costs. We have made a further positive adjustment to SHEPDs allowance in our decision which we outline in our decision letter.