Following consultation in May, Ofgem issued its decision on 17 December on Scottish Hydro Electric Power Distribution’s (SHEPD’s) proposal to contribute towards proposed electricity transmission links to Shetland, Western Isles and Orkney.
For the Shetland Link, subject to Ofgem approving the Final Needs Case and based on current assumptions, SHEPD would contribute £123mn for capacity support, £117.5mn for control support and £10.2mn for losses reduction benefits to the link. To protect SHEPD’s distribution customers, a contribution cap for Shetland would be set at £394mn.
For the Western Isles and Orkney projects, Ofgem said that the contribution would be highly contingent on the approval of a link to Shetland, and Ofgem said that it would be necessary to consult on a separate contribution methodology, with this planned for early 2020.
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