ssen distribution business plan

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• Shaping Our Plan With You
• Have Your Say

POWERING COMMUNITIES TO NET ZERO

We’ve published our ambitious final Business Plan for 2023-2028, which sets out how we intend to run and operate our networks for the 3.8 million homes and business we serve across the north of Scotland and central southern England.

Our networks are set to transform as we prepare to meet the new and rising electricity demands of the future, so we’ve built a plan with our customers and communities, for our customers and communities, to enable the transition to a net zero world.

DOWNLOAD EXECUTIVE SUMMARY

VIEW THE BUSINESS PLAN ANNEXES

DRAFT DETERMINATION RESPONSE: August 2022

FINAL SETTLEMENT OVERVIEW: February 2023

PLEASE DOWNLOAD THE BUSINESS PLAN HERE

EXPLORE OUR PLAN

We are building a strong foundation to meet new demands and make a net zero world a reality for our customers and communities.

Co-created and shaped by those who matter most – our customers and stakeholders, we’ve listened to over 25,000 diverse voices, engaging at a scale and depth far beyond anything we have done before.

This extensive engagement has helped us shape six clear goals that we’ll deliver by 2028, that are built around our strategic outcomes.

In all of this, we will deliver a positive impact on society. Our plan includes 64 outputs which will deliver meaningful benefits for our customers and communities.

Please click below to explore these outputs in more detail.

Positive Impact on Society Diagram

A summary of our riio-ed2 business plan from managing director chris burchell.

THE RIIO-ED2 JOURNEY

RIIO-ED2 is the next electricity distribution price control period set by our regulator Ofgem, which will run from 2023-2028. Following extensive stakeholder engagement, we submitted our draft business plan to Ofgem in July 2021, before further refining the plan ahead of final submission in December 2021.

The ambitious £3.99bn business plan sets out how we intend to operate and develop our networks to serve over 3.8 million homes and businesses across the north of Scotland and central southern England both now, and in the future.

Our DSO strategy will provide significant benefits across our plan:

• Through flexible connections saving £417.6m in reinforcement costs, offsetting 1.8mtCO 2 .
• Deferred reinforcement and avoided capital expenditure saving customers up to £46.3m.

Equipping future customers with the right tools and knowledge to lessen the likelihood of falling into fuel poverty. Targeted support to adults with learning difficulties ensuring they have the help and support they need. Providing access to digital upskilling to ensure customers are not left behind in the digital age. £1.4m benefits delivered to customers in vulnerable situations over RIIO-ED2.

Improved service for all our customers across a number of different channels, including diversified self-serve options alongside traditional means of communication.

Effective Whole Systems solutions delivered aligned with stakeholder needs.

Our proposal will deliver net customer benefits of £27m by enabling a range of benefits across island communities, including sustainable economic development, education, healthcare, and addressing depopulation through access to good quality digital infrastructure.

Net customer benefits of £11.2m delivered by helping to lower long-term costs for customers and local net zero and whole system initiatives through more efficient siting and use of infrastructure.

Stakeholders said that the most effective way to move to a Whole Systems approach is through facilitating access to network data. Benefit: Local authorities are aware of our services and how we can support them in their decarbonisation plans.

£15m societal benefit delivered by reducing oil leakage.

Compliance with new legislative requirement to remove PCB across all DNOs. Transparency on the volume of PCB-contaminated equipment on the network (through our Annual Environmental Report).

Reduced transformer losses by up to 30% through our TASS project. £36m societal benefits delivered by energy savings and lower carbon emissions as a result of reduced losses.

Reduction in the amount of toxic gas emitted by our assets, in line with our 1.5°C SBT. £2.5m societal benefits delivered by reduction in carbon emissions.

A transformational and longer-term approach for net zero, that provides a legitimate and transparent record of carbon abatement Improved air quality and local habitats.

Restoring ancient seagrass beds that have been destroyed by seabed activity provides carbon sequestration rates three times higher than on-land planting:

• Improving natural habitats and protecting against coastal erosion.
• £3.4m net benefit to the environment.

Improved visual amenity of lines in National Parks and Areas of Outstanding Natural Beauty.

£0.4m financial benefits delivered by cheaper fuel costs. £0.2m societal benefits delivered by a reduction in carbon emissions.

£1.4m financial benefits delivered by cheaper fuel costs. £1.5m societal benefits delivered by a reduction in carbon emissions and improved air quality.

Reduced carbon emissions.

£1.9m societal benefits delivered by reduction in carbon emissions.

Contribution to lower emissions across multiple companies in our supply chain.

Reduced impact of flooding on our network leading to improved resilience to climate change.

Decarbonisation and improved environmental performance of our network and the wider community. Improved air quality, reduced carbon emissions and net zero.

Customers receive guaranteed levels of performance for connections services.

Our proposals will improve the connections process to better cater stakeholder needs.

Major connection customers provided with tailored services thanks to more flexible connection options and enhanced communication throughout the connections process.

Although a relatively low priority for consumers, we will meet our targets through our plan and further aim to reduce time to connect by 2023 for small/minor connections. Benefits: Faster access to LCT.

Our Open Door and Connections+ IT projects will provide more granular detail on our available capacity and real-time updates on network load: £4.6m cost efficiency benefits delivered over RIIO-ED2. £3.8m additional societal benefits delivered to connections customers through saved time and increased satisfaction. These benefits are attributable to the last 2 years of RIIO-ED2 once the improved process is in place. We expect these benefits to be ongoing beyond RIIO-ED2.

£110m carbon benefits and £112m customer financial benefits over RIIO-ED2, enabled by ensuring LCT customers are able to connect on time.

Combined CVP in cost and benefit: £7.1m net benefit delivered to customers and wider society from our proposed interventions within RIIO-ED2.

£7.1m net benefit delivered to customers and wider society from our proposed interventions within RIIO-ED2.

Extended operational life until 2035 as a standby generator to ensure continuity of supply for island customers.

Improved efficiency and sustainability of site operation to minimise societal costs and impacts from their operation.

Enables a Whole System approach to these communities. Needs case development during RIIO-ED2.

Improved service reliability for customers categorised as ‘worst served’ (reduced CML and CI).

Improved resilience to external threats and greater reliability.

Improved resilience in the longer term, and improvements to shorter-term reliability. Greater ability of our assets to withstand climate shocks and support the transition to net zero.

Reliability of service.

Reduced inconvenience caused by power outages.

More reliable supplies for customers. Reduced carbon emissions (from backup generators). £2m in wellbeing benefits delivered to 12,000 customers as a result of fewer power during power cuts over RIIO-ED2.

More reliable supplies for customers. Reduced carbon emissions (from backup generators).

Reduced accidents and increased network safety.

Increased awareness and reduced accidents.

A safe and compliant network for our colleagues, partners and the wider public.

Improving the resilience for customers during a power cut, whilst with the use of the energy efficiency measures seeing financial benefits. £0.5m benefits delivered to customers in vulnerable situations over RIIO-ED2.

The fund enables customers to access the help they would otherwise be excluded from. Through bridging the gap in support available, customers will be able to install energy efficiency measures. £0.25m benefits delivered to customers in vulnerable situations over RIIO-ED2.

Our data-driven approach will help target our activities and register more customers who will benefit from our services. We will have improved support delivered through our partnership approach as required. £17.2m financial benefits delivered through targeted fuel poverty support and energy efficiency measures. £3.7m societal benefits delivered through quality-of-life improvements, health benefits and carbon emission reductions.

Our stakeholders demand better communication and understanding of the benefit accrued from the deployment of innovation. Collaboration with a range of stakeholders was listed as a key facilitator for good innovation, especially learning from others’ mistakes.

Communities empowered to participate in flexibility markets, benefiting from the energy system transition. Digitalisation and IT/ OT investments are a key enabler for many of the outputs across the plans we have co-created with our customers and stakeholders. A direct benefit of £175m.

£8.2m financial benefits and £1.4m societal benefits enabled by ensuring customers in vulnerable situations can access energy transition benefits.

Increased service to customers in vulnerable situations through bespoke Personal Resilience Plans, providing £3.9m net consumer benefits.

£17.2m financial benefits delivered through targeted fuel poverty support and energy efficiency measures. £3.7m societal benefits delivered through quality-of-life improvements, health benefits and carbon emission reductions.

Reduced impact from supply interruptions.

Simplified processes and quicker resolution of complaints.

Our CVP will support local authorities by providing their net zero and whole system initiatives with the greatest chance of success in all phases of their development and delivery. It will lead to more efficient siting and use of infrastructure, from a network perspective, helping lower long-term costs for our customers and the local initiatives.

Supply chain stakeholders told us that they have ambition to achieve net zero themselves and that they wished to collaborate with us to tackle our Scope 3 emissions. Benefits: Contribution to lower emissions.

Stakeholders support ambitious targets for reducing oil-filled cables. We have decided to set a reduction target of 78km to balance this with the high costs of this work. Benefits: £6m societal benefit delivered by reducing oil leakage.

Stakeholders have urged us to be ambitious and support targeted investment in natural capital, which is fundamental to any net zero journey. This is a transformational and longer-term approach for net zero, that provides a legitimate and transparent record of carbon abatement. Benefits: Improved air quality and local habitats.

Stakeholders support our strategy of targeting assets with the highest probability of failure. Our investment will help ensure we deliver longer-term resilience, in line with stakeholder feedback, while recognising that affordability is a key priority for our communities. Benefits: Improved reliability.

A wide range of stakeholders confirmed that reliability is consistently a high priority. We have proposed targeted investment that enables us to meet our targets and further reduce the time customers are off supply. Our stakeholders have identified reducing the length of power cuts as a priority. Our investment will enable us to deliver further improvements. Benefits: Reduced time off supply – less disruption to customers’ lives.

Stakeholders told us that the change in the energy landscape, and the introduction of LCTs could deliver additional benefits to customers in vulnerable situations or low-income households. Benefits: Ensuring vulnerable customers can access energy transition benefits.

Customers and partners propose we create bespoke Personal Resilience Plans for supporting customers in the most vulnerable situations. Benefits: Increased service to vulnerable customers, with £3.1m net customer benefits.

Domestic consumers’ highest priority was for setting ambitious targets for helping those in fuel-poverty. Stakeholders have said we have a responsibility to ensure no one is left behind in the energy transition and that working with partners is effective. Our data-driven approach will help target our activities and register more customers who will benefit from our services. Our partnership approach will help us deliver the support required. Benefits: £8.4m financial benefits delivered through targeted fuel poverty support and energy efficiency measures. £0.7m societal benefits delivered through quality of life improvements and health benefits.

Some SME stakeholders told us that they need extra support during power cuts. In response to stakeholder feedback, our Business Support Register will provide more tailored support to businesses in coping with power cuts. Benefits: Reduced impact from supply interruptions.

We will deliver improved service for all our customers across a number of different channels. Benefits: Improved customer service.

Digitalisation and IT/OT investments are a key enabler for many of the outputs across the plans we have co-created with our customers and stakeholders. Benefits: Direct benefit of £292.5m.

Stakeholders broadly consider safety to be a ‘given’ and a high priority for us. It is crucial that our Business Plan continues to deliver a safe network for our communities, colleagues and partners. Benefits: Reduced accidents, increased reliability for customers.