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Adopting a clear and distinctive identity through Scottish and Southern Electricity Networks
In September 2016, SSE’s three electricity networks businesses adopted a common trading name as
Scottish and Southern Electricity Networks (SSEN). This new name and an accompanying rebranding
process were developed following extensive engagement with customers, employees and other
stakeholders.
This change responds to the operating environment under the RIIO price controls which incentivises
all network operators to engage effectively with their customers and stakeholders in developing and
implementing their business plans. SSEN believes that adopting a clearer, simpler and more
distinctive identity will help to deliver improved accountability to the communities it serves,
supporting its performance against key incentives.
Putting stakeholders at the heart of decision-making
Scottish and Southern Electricity Networks is also establishing a Stakeholder Advisory Panel to work
alongside its Board to help scrutinise business performance and effectiveness in meeting its
commitments under the RIIO-T1 and RIIO-ED1 price controls. The Panel will consist of a Chair and up
to eight people, who are being recruited to reflect a broad range of external interests, skills,
knowledge and experience. Through its work, the panel will bring stakeholder insight and challenge
to SSEN’s decision-making at the highest level, helping to drive improvement in key processes and
outcomes for customers.
Financial performance in Networks
During the 6 months to 30 September 2016, total adjusted operating profit in Networks was
£455.9m, compared to £451.6m in the same period last year, with the principal movements as
follows:
Electricity Transmission: in line with expectations for 2016/17 outlined in SSE’s FY2015/16
Financial Results, adjusted and reported operating profit decreased by £6.8m to £135.6m
reflecting the phasing of capital expenditure and revenue associated with the growing asset
base;
Electricity Distribution: adjusted and reported operating profit rose very slightly, by £2.4m to
£181.0m, with the full benefit of previous under-recoveries of revenue still expected to be
reflected in the second half of the year; and
Gas Distribution: SSE’s share of SGN’s adjusted operating profit rose by £8.7m to £139.3m,
reflecting the profiling of revenue and continued good performance of the business. Reported
operating profit has increased by £32.6m to £93.1m due to the impact of the change in
Corporation Tax rate, as well as the underlying improvement in performance.
Electricity Transmission
Scottish and Southern Electricity Networks, operating under licence as Scottish Hydro Electric
Transmission plc, is responsible for maintaining and investing in the electricity transmission network
in the north of Scotland.
Delivering a major programme of investment
Since the start of the RIIO T1 price control in 2013, Scottish and Southern Electricity Networks’
capital investment in its transmission network has totalled £1.66bn. With its committed pipeline of
investment, it expects to increase its RAV from £2.3bn as at September 2016 to around £3bn by
March 2018.
Good progress continues to be made with the delivery of SSEN’s flagship Caithness-Moray
transmission link which, with an agreed value of £1,118m (2013/14 prices), is its largest single
investment to date. In September 2016, the first part of the new Blackhillock substation, near Keith,
was energised on schedule. Manufacture of the subsea cable has now been completed and a
specialised cable-laying vessel is due to install this on the Moray Firth seabed during 2017. The
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