The settlement, of £3,456 million, is £179 million lower than SSEPD’s revised business plan. It will see the distribution share of the average household bill in its Scottish Hydro Electric Power Distribution (SHEPD) area fall by around £27 next year and in the Southern Electric Power Distribution (SEPD) area by around £18.
SSE finance director Gregor Alexander said: “This is a tight settlement that will require further efficiency savings against our business plan but we are focussed on delivering those efficiencies to ensure a fair return for investors while also delivering stronger, more robust networks for the 3.6m distribution customers who rely on us to keep the lights on.”
Ofgem announced its final determinations for power networks under the RIIO framework on November 28. Companies have eight weeks form that date to decide whether to accept them, or challenge Ofgem via the Competition and Markets Authority.
SSE announced on 4 December that director of distribution Mark Mathieson was leaving the company, to be replaced by Colin Nicol, formerly director of generation development.