Plans To Cut Electricity Costs In Highland

30th June 2013

SSEPD launches ‘more for less’ business plan on the future of the local electricity network in Highland region.

Scottish and Southern Energy Power Distribution (SSEPD), a subsidiary of SSE plc, has today published a detailed business plan that aims to deliver a 10% cut to the distribution network costs for customers in the Highland region.

The company, which is responsible for keeping the lights on for 3.7m homes and businesses, has submitted to energy regulator, Ofgem, a detailed blueprint on how it plans to run the local electricity network it owns and operates in central southern England and the north of Scotland from 2015 to 2023. SSEPD’s Inverness depot which employs 300 staff will play a key role over the coming years in this process.

The plan outlines twelve key commitments, one of which is to do ‘more for less’ for Highland electricity distribution customers which, if agreed by Ofgem, could result in the final amount consumers are charged by electricity suppliers being reduced as early as 2015.

On average, 16 per cent of a customer’s total electricity bill is made up of electricity distribution costs, which pay for the running, upgrade and maintenance of the local electricity network¹. SSEPD is pledging that, through innovation and by making the most of more efficient new technologies, it will be able to reduce this part of the bill by 10 per cent in 2015 and have only inflationary increases thereafter.

The plan has been developed over twelve months through a programme of listening and consultation with customers and stakeholders. As part of this, SSEPD has developed a short document, ‘The Plain Guide to Your Future Energy Network’, to inform customers about the services that it provides and the plans for the future.

The business plan is structured around twelve key commitments including: proposals to reduce the distribution network costs for consumers in the north of Scotland and south of England by 10% in 2015; fewer and shorter power cuts; a quick response to requests to connect to the local electricity network; annual publication of a resilience plan for managing power cuts during a storm and under-grounding cables in areas of natural beauty. The Plan also estimates the company will invest around £486m every year in its networks.

Director of Distribution Stuart Hogarth said: “Customers are at the heart of our business and I believe the commitments we have outlined today reflect their priorities. We know that the targets we have set ourselves are challenging. This is because we want to continue improving the network and fulfilling our core aim of maintaining a safe and reliable supply of electricity to homes and businesses in our area.

“We continue to look to the future and plan for what might happen to energy use between now and 2023. However, just because we have submitted our business plan does not mean that we don’t still want to hear from customers and I would encourage everyone to visit our website and view ‘The Plain Guide to Your Future Energy Network’ to learn more about our plans and provide their views.”

Projects include: In Aultbea engineers a £2.3m complex engineering project to replace the overhead lines between Aultbea and Dundonnel to secure the electricity supply to the area. This work was done by specialist equipment including rock drills and helicopters due to the terrain. Proposed work this financial year includes refurbishing overhead lines in Caithness, Ballindoch in Morayshire and Lethen in Inverness-shire. An ongoing £1.5m investment in Inverness city centre.

http://www.yourfutureenergynetwork.co.uk
http://www.yourfutureenergynetwork.co.uk/explaining-our-future-costs-to-you/