SSEN DISTRIBUTION RESPONSE TO RIIO-ED2 FINAL DETERMINATION

SSEN Distribution, part of SSE plc, has today received Ofgem's Final Determination for the RIIO-ED2 electricity distribution price control, which will run from 1 April 2023 to 31 March 2028.

The final determination, which follows detailed engagement with Ofgem and stakeholders, allows SSEN Distribution £3.59bn of baseline total expenditure for the five-year period against an initial business plan ask of £4bn. This reflects positive movement from the Draft Determination in June, with baseline allowances increasing by £300m, and represents a 21% increase in allowed expenditure compared to an equivalent period in RIIO-ED1.

Ofgem is also allowing a headline regulatory cost of debt of 3.01% in SEPD and 3.07% in SHEPD and cost of equity of 5.23% real (CPIH) indexed.

SSEN will now carefully examine the full details of Ofgem's Final Determination to gauge the extent to which it correctly represents a fair and balanced outcome for customers and investors. This assessment will run into next year and will take place alongside continued preparations and mobilisation for delivery of the new business plan from April.

Notes:

SSEN's RIIO-ED2 Business Plan, co-created through extensive stakeholder engagement, targets significant improvements to reliability, resilience, and services for customers alongside acceleration of investment in local network infrastructure and flexible systems needed to power communities to net zero.

Framed around a sector-leading commitment to a 1.5^oC science-based target pathway, the plan aims to deliver positive impact to society through supporting a just transition and driving local economic growth.