Decision on the Shetland Competitive Process Costs Reopener
Decision
Publication date
Industry sector
Distribution Network
Shetland’s electricity supply is largely generated from Lerwick Power Station, which is approaching the end of its operational life. In April 2014, we directed Scottish and Southern Electricity Networks (SSEN) to run a competitive process to identify the most efficient solution for Shetland’s energy future. SSEN has recently announced that a joint bid by NG Shetland Link Ltd (NGSLL)–Aggreko was their preferred bidder. The bid involves building a distribution link between Shetland and GB mainland with a back-up diesel generator on Shetland
We consulted on the costs incurred by SSEN in running the competitive process and have decided to allow the additional costs that were not in the baseline allowance. These costs will be amended in the Scottish Hydro Electric Power Distribution (SHEPD) licence.