REG - OFGEM SSE Plc - OFGEM CONFIRMS FUNDING FOR £1BN TRANSMISSION LINK <Origin Href="QuoteRef">SSE.L</Origin>

SSEAnnouncement

16/12/2014 07:11

RNS Number : 7910Z
OFGEM
16 December 2014
OFGEM CONFIRMS FUNDING FOR 1 BILLION TRANSMISSION SUBSEA LINK 
Ofgem has today approved 1.1 billion funding for a new subsea link in the north of Scotland. The regulator'sdecision is 105 million less than the funding request from Scottish Hydro Electricity Transmission (SHE Transmission) to ensure consumers pay no more than necessary. 
The new link will connect 1.2GW of new renewable electricity generation following completion in 2018. This additional capacity will increase the resilience of Britain's energy infrastructure. It will connect the electricity grid on either side of the Moray Firth. 
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Notes to editors
1. Ofgem's decision letter on the Caithness Moray transmission project www.ofgem.gov.uk/publications-and-updates/decision-our-assessment-caithness-moray-transmission-project
2. Cost of project

SHE Transmission
Ofgem
Proposed efficient costs (October 2014)
1,236 million
1,062 million
Updated proposed efficient costs 
1,223 million
N/A
Final funding decision (December 2014)
N/A
1,118 million
Ofgem's lower cost assessment is based on a range of analysis including unit cost benchmarking, a detailed review of some costs, comparisons to similar projects, and a review of SHE Transmission's procurement strategy and processes. 
The final funding decision is 56 million more than Ofgem's view in October. This follows consultation responses and new information provided by SHE Transmission.
3. For further press information contact:
Dafydd Wyn: 020 3263 9943
Mark Wiltsher:  020 7901 7006
Out of hours media contact number: 07766 511470

This information is provided by RNS
The company news service from the London Stock Exchange
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