Competition in onshore electricity networks

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SSEN Transmission notes yesterday’s [Tuesday 3rd August] publications by BEIS and Ofgem, consulting on Competition in Onshore Electricity Networks, which set out proposals to introduce competition in the design, development, ownership and ongoing maintenance and repair of Great Britain’s critical national electricity transmission infrastructure.

Due to the essential and unrivalled role electricity transmission provides in keeping the lights on and supporting the transition to net zero emissions, SSEN Transmission believes there are three key tests that Ofgem and Government must satisfy before introducing new participants to the GB transmission system and the disruptive impacts and risks this may cause. It must:

  1. Maintain security of supply and the high reliability standards and performance of GB’s transmission networks, avoiding a fragmentation of responsibility and ensuring new entrants are subject to the same rules, responsibilities and obligations of incumbent Transmission Owners.
  2. Accelerate, not delay, the delivery of the country’s legally binding net zero emissions reduction targets, including delivering 40GW of offshore wind by 2030 and the recently announced 78% emission reduction target by 2035.
  3. Provide demonstrable benefits to, and be supported by, consumers, businesses, industry and electricity generators; underpinned by robust and transparent economic impact assessments.

Commenting on the publications, Rob McDonald, Managing Director of SSEN Transmission, said:

“As critical national infrastructure, transmission networks play a key role in providing the electricity needs of society, connecting and transporting the electricity required to keep the lights on for homes and businesses and enabling the transition to net zero emissions.

“We have engaged constructively throughout the development of the Early Competition Plan and identified a number of areas where further robust analysis is required to ensure the benefits, or otherwise, of these proposals are properly understood.  It is vital that any fundamental change in the delivery of new critical infrastructure provides demonstrable benefits to stakeholders and avoids any delay to the delivery of net zero targets.

“As Ofgem and BEIS consider and consult upon the introduction of competition in transmission, we will continue to work constructively with the regulator, Government, the NGESO, wider industry and stakeholders.”