Decision on statutory consultation to modify the RIIO-ED1 Price Control Financial Instruments for Shetland Extended Interim Energy Solution Costs

Decision

On 25 July 2019, we consulted on proposed modifications to the ED1 Price Control Financial Model (PCFM) and ED1 Price Control Financial Handbook (Financial Handbook) to implement our decision on allowed costs for Scottish Hydro Electric Power Distribution (SHEPD) for the Shetland Extended Interim Energy Solution.

In the consultation, we proposed to modify the ED1 PCFM and Financial Handbook to reflect 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, totalling £85.4million.

Having considered the responses to this consultation, we have decided to proceed with the modifications. The modified ED1 PCFM and Financial Handbook are published alongside this decision.

This is the version of the model we will use for the Annual Iteration Process (AIP) which will take place by the 30 November 2019.