Notice of proposed modification to the RIIO-ED1 PCFM with respect to SSEH subsea cables cost allocation rates, and other minor updates

In accordance with Charge Restriction Condition (CRC) 4A of the Electricity Distribution Licence, we are consulting on the following proposed modification to the ED1 Price Control Financial Model (PCFM):

Inclusion of allocation percentages within the “SSEH” sheet to allocate the £45.3m allowed expenditure in respect of Subsea Cables expenditure to “Non-load related capex – asset replacement” such that this amount is fed through to allowed revenue.

On 29 November 2019, whilst the Model published correctly reflected the allowed expenditure of £45.3m, the allocation percentages required to feed this expenditure through to base revenue had not been updated. As such, the additional allowed expenditure was not recognised in SSEH’s allowed revenue in that period.

This modification that we are now making to the ED1 PCFM will enable the revised allowed expenditure for Subsea Cables costs to feed through to SSEH’s allowed revenue.

Please respond to this consultation no later than 29 July 2020. We intend for this modification to take effect by 10 August 2020 and to be included within the Annual Iteration Process, due to conclude on 30 November 2020.