Strong levels of network reliability for electricity transmission

Electricity transmission owner (TO) businesses have been found to meet or exceed their annual targets for 2018-19, with strong levels of network reliability.

Ofgem’s annual report for electricity transmission network companies found the overall reliability of network supply rating to be in excess of 99.99%, while businesses had outperformed their annual Energy Not Supplied target. All TOs had registered additional projects for funding under the Network Innovation Allowance (NIA) funding streams with NGET spending £7.4mn, progressing 54 projects, SPT spending £1.3mn on 15 projects, and SHET spending 0.75mn on 10 NIA projects.

The report also assessed the companies on their volume driver mechanisms, which link adjustments to a company’s baseline cost allowance to its actual volume of network services provided over RIIO-ET1. NGET was found to be forecasting to deliver lower than all of its baseline outputs, including 12.6GW of new generation capacity by the end of 2021 against a 33.7GW baseline. This was explained as being down to a reduction in the number and size of customer connections.

In Scotland, the report explained there are two customer-led volume driver mechanisms: providing network capacity to connect multiple generators (shared use) and the connection of single generators (single use). SPT is expecting to fall short against its baseline output of “sole use” and exceed in the case of share use, while SHET is forecast to be above baseline levels for both.

Meanwhile all TOs anticipate a total expenditure (totex) underspend against cost allowances across RIIO-ET1, with totex project as being close to £19.45bn, working out as a cumulative underspend of 16%.