Ofgem welcomes SSE’s contribution to consumers
Ofgem welcomes the announcement today from Scottish and Southern Electricity Networks (SSEN), the electricity networks division of SSE plc, that it will make a voluntary contribution of £65.1 million to consumers.
This decision follows a review by SSEN of its performance under Ofgem’s RIIO-T1 (electricity transmission) price control and discussions with Ofgem.
Network companies require a licence to operate, not just from the regulator, but from their own customers who must be confident they are getting good value for money.
We would welcome other network companies to take similar steps by making voluntary contributions to consumers.
Notes to editors
- Last month, David Gray, chairman of Ofgem, warned network companies that their returns need to be seen as fair to maintain public confidence in the regulatory regime.
- In July, Ofgem signalled that network companies need to prepare themselves for a tougher round of price controls from 2021. During the current price control, Ofgem has secured additional savings of over £4.5 billion for consumers by a combination of reduced revenues or voluntary contributions from companies.
- National Grid has already made a similar decision to voluntarily defer allowances from its electricity transmission price control.
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