Ofgem said on Monday that it has proposed funding of £1.1 billion for the subsea link which plans to transmit 1.2 GW of remote Scottish renewable power to areas of higher demand on the other side of the Moray Firth.
The regulator’s proposal falls £173.9 million below SHE Transmission’s bid, “to ensure consumers pay no more than necessary,” the regulator said.
SSE said it is “disappointed” with the regulator’s proposal.
“SHE Transmisison believes that it has produced a well defined and well scoped project that offers value for money for customers while allowing the realisation of the vast potential of renewable electricity generation in the north of Scotland for the benefit of the whole country,” a statement from the utility said.
SSE added that it plans to “engage constructively” with the consultation period on the proposal so that a resolution can be found “that’s fair to customers and investors alike”.
The proposals are now under consultation for four weeks, with a final decision on funding to be made in December.