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Supporting resilient communities
As incentivised under both price controls, Scottish and Southern Electricity Networks understands
the importance of community engagement in its operations and customer-facing activities and the
need to prioritise customers with additional vulnerability.
The second round of awards from SSEN’s £1.3m Resilient Communities Fund, which was established
to support local communities in their preparation for and response to emergencies, was made in the
first half of 2016/17. SSEN has pledged to continue this fund with one third of SSEN’s Stakeholder
Incentive award under RIIO-T1 and RIIO-ED1 assigned to the fund each year. For 2017/18 this will
result in £300,000 in funding being made available to community groups in each network area.
Following the success of its 2015/16 Winter Ready campaign, SSEN will build upon the customer
communications improvements achieved, including advertising on TV, radio and digital channels.
The campaign will promote the services it provides for customers, including those who may need
extra help during a power cut via its Priority Service Register.
SGN
SGN manages the network that distributes natural and green gas to 5.9 million homes and
businesses across Scotland and the south of England. In line with its equity holding, SSE historically
received 50% of the distributable earnings from SGN Ltd. This reduced to 33.3% following
completion of the part disposal to ADIA and SSE will continue to provide SGN with some back office
support which is manged via a service agreement.
Working with the Gas Distribution Price Control
SGN is focused on ensuring all its outputs under Ofgem's RIIO framework are met, incentives are
maximised and innovation is delivered effectively while running an efficient, safe and reliable
network.
SGN's investment programme is a key element of this and, within overall total cost allowances of
over £4.6bn (2012/13 prices), Ofgem has allowed around £2.8bn over the current eight year price
control running to 2021 to cover new capital investment and to manage the risks relating to SGN's
existing assets. This investment enables SGN to:
deliver a safe and reliable network for customers;
minimise its impact on the environment and communicate its work to stakeholders; and
deliver new customer-driven initiatives to help reduce fuel poverty and increase awareness of
Carbon Monoxide dangers.
In terms of operational performance and safety, 98.7% of uncontrolled gas escapes reported by the
public were attended within one hour of notification, exceeding Ofgem’s 97% standard.
Networks – Conclusion and Priorities
SSE’s economically-regulated Networks businesses are key to the provision of energy in Scotland and
southern England. SSE aims to put the current and future needs of customers at the heart of these
businesses and, in doing so, earn a return that is value for money for customers and fair to investors.
This will be its aim in 2016/17 and beyond.
Networks priorities for 2016/17 and beyond
SSE’s Networks businesses’ priorities in 2016/17 and beyond are to:
operate safely and meet all compliance requirements;
provide an excellent service to all customers who rely on its networks;
deliver required outputs while maintaining tight controls over expenditure;
deliver every customer connection to quoted cost, time and budget;
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