Utility provider Scottish and Southern Energy (SSE) has now accepted Ofgem’s final proposals for the electricity distribution price control which comes into force in April 2010 for a five year period.
SSE’s core purpose is to provide the energy people need in a reliable and sustainable way, but become one of the operators most critical of the UK gas and electricity market regulator’s decision to allow weighted cost of capital, post tax, of 4%. This followed Ofgem’s announcement of the price controls earlier this month, when SSE said it was “reassessing its appetite” for distribution and transmission assets.
However, after reviewing the finer details, Gregor Alexander, SSE’s finance director has stated that the firm now recognises that Ofgem’s overall package “represents an acceptable outcome”.
But Mr. Alexander reiterated that the deal “is not in keeping with the scale of long-term investment challenges set out in Ofgem’s own Project Discovery analysis”.
Utilityweek.co.uk/ News (Scottish and Southern won’t go to Competition Commission-22.12.09)