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said: “These proposals, if implemented, control was in the positive consumer “Ofgem has made significant progress
will have damaging impacts on the outcomes gained through a targeted so far, but the acid test will be the
energy networks’ ability to deliver the and robust incentive package. SSEN final outcome.
government’s plans for clean growth and believes further change is required in “The regulator will face intense
the wider economy, undermining efforts the incentives for RIIO-2, where Ofgem industry pressure to water down these
to build a smarter, more efficient energy continues to propose a framework measures in the coming months. It must
system for the public. Costs are down, which blunts existing efficiency hold its nerve and deliver a price control
power cuts are at record lows and the incentives in an attempt to secure which is good value for consumers.”
amount of renewable energy connected predictable outcomes. This will risk
to the grid is at an all-time high. Ofgem harming consumers in the long run
needs to build on this track record. and jeopardise progress in achieving
“SSEN is currently preparing to submit POSITIVE SIGNS
“The approach needs to evolve in government policy objectives.
response to experience and the lessons
learnt under the RIIO-1 price control. its first draft business plan for the next FOR BIOMETHANE
Central to this is ensuring that Britain’s transmission price control, where
energy networks are able to continue to Ofgem has said the role of stakeholders,
attract significant levels of investment including consumers, will be key. It IN OUTLINING THE price control
over the next decade and beyond, at is, therefore, even more critical that framework Ofgem chiefs “agree
lowest cost to the consumer.” Ofgem remains open to feedback and that biomethane injection has
In a statement, Scottish and substantive change that will allow the the potential to be a low regrets
Southern Electricity Networks (SSEN) development of business plans that fully approach to decarbonisation” and
said: “Although Ofgem has revised its deliver on stakeholder ambitions. propose to require gas distribution
position in some areas, SSEN retains “There remains much to be decided network (GDN) operators to
its concern, as set out in its response to and final proposals are not due until report on biomethane outcomes
Ofgem’s consultation, that the proposed late 2020. During that time, SSEN will data as part of the new Annual
framework fails to fully balance continue to advocate constructively Environmental Report output.
stakeholder and consumer needs with and robustly for a regulatory This announcement sends
the requirement to provide investor framework that strikes the right positive signals to the biomethane
confidence and attract the significant balance between ensuring efficiency industry and both the Renewable
investment needed to enable the clean and affordability with delivering the Energy Association (REA) and
energy transition. necessary investment to improve Renewable Energy Assurance
“In particular, SSEN remains very services for consumers and drive Ltd (REAL) welcomed the
disappointed with the proposed cost further progress towards a low carbon, announcement following a
of equity range which runs contrary flexible energy system.” successful, lengthy campaign to
to the independent analysis provided However, despite the industry’s reverse Ofgem’s initial approach,
to Ofgem on the level of risk inherent disappointment, Citizens Advice called which excluded biomethane.
in the delivery of critical electricity for Ofgem to “hold its nerve” and stick Jesse Scharf, Green Gas
transmission infrastructure. with the proposed caps. Certification Scheme Manager, said:
“A key strength of the RIIO-1 price Chief Executive Gillian Guy said: “The GGCS and the REA have fought
hard to have the benefits of green
gas recognised in the next network
price control – from a starting point
where biomethane would have
had no recognition or performance
metrics, to the final output whereby
the regional networks must now
work to facilitate biomethane
connections, which should ease
the process for developing new
green gas facilities.”
Dr Nina Skorupska, Chief
Executive at the REA, said: “As the
Committee on Climate Change and
others have outlined, deploying
green gas is an effective way of
helping decarbonise our energy
system, and combines this with
a circular economy approach,
producing sustainable fertiliser as
a by-product, as well as supporting
rural economies. The UK will gain
considerably from new biomethane
capacity that we hope this
outcome, for which we vigorously
campaigned, will result in.”

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