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NET ZERO MUST BE AT THE HEART OF
RIIO-2 FROM THE START, SAY NETWORKS
ENERGY INDUSTRY CALLS at the ENA, said: “This letter is testament
to the overwhelming recognition across
the energy industry that investing in
ON OFGEM TO PUT NET and upgrading our electricity and gas
networks will be critical to hitting the
UK’s net zero emissions targets.
“Networks are foundational to every
ZERO AT HEART OF RIIO-2 aspect of the transition – particularly
making sure that customers benefit
from new services and products. We
need Ofgem’s decisions on RIIO-2 to
A VARIETY OF ENERGY companies and grid connections and reinforcements enable investment in the low cost, low
organisations have written to Ofgem needed to transport the required levels carbon energy system the public both
to urge the regulator to make net zero of renewables for net zero. need and want.”
central to the next price controls, “Regulation does not exist separate to The RIIO-2 price controls have
reports Current±. policy. If the government’s preference already been the subject of fierce debate
In the letter, they argue that RIIO- is to increase the deployment of cost- regarding their impact on net zero. In
2 will be a “critical enabler” of net effective renewables and flexibility as their scathing responses to Ofgem’s
zero, stressing that with at least a key element of achieving the net zero draft determinations, Scottish and
40GW of renewables needing to be target, regulatory processes and the Southern Electricity Networks (SSEN)
efficiently connected by 2030 and upcoming network price control must Transmission and ScottishPower Energy
millions of electric vehicles (EVs) not constrain this,” the letter reads. Networks (SPEN) branded the proposals
needing to charge easily, the network A number of organisations have as “risking the delivery of net zero” and
infrastructure must be ready. signed the letter, including the Energy being “manifestly flawed” respectively.
As a result, net zero must be at the Networks Association (ENA), Scottish In particular, SSEN identified
heart of RIIO-2 “from the start, not as a Renewables, RenewableUK, Siemens £172 million of cuts that resulted in
subsequent ‘uncertainty’” the letter states. Energy, the Aldersgate Group and Burns calculation and methodological errors
The price controls should be ahead & McDonnell among others. made by Ofgem that would “severely
of government ambition, it argues, and Speaking on behalf of electricity impact our ability to maintain a reliable
should empower investments into EV transmission and gas network operators, and resilient network” according to
charging infrastructure as well as the John Spurgeon, Head of Regulatory Policy Managing Director Rob McDonald.

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