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12/05/2025

SSEN Distribution Outlines Vision For ED3 Price Control

SSEN Distribution has today (Monday, 12 May 2025) become the first UK Distribution Network Operator (DNO) to publish its long-term vision and emerging thinking for the critical ED3 price control period, set to commence in 2028. The vision focuses on how local electricity networks can deliver decarbonisation, unlock sustainable economic growth, and enhance value for consumers.

The publication comes just one week after the energy regulator, Ofgem, released its framework decision for ED3. SSEN views the ED3 period as a crucial element within a broader strategic plan for transformational network investment, serving as a key 'staging post' towards achieving the UK Government's 2050 decarbonisation targets. Consequently, SSEN's plans emphasise delivering sustainable economic growth for communities, positioning electricity distribution as pivotal in enabling increased electrification across society and local economies.

Shaped by initial engagement with stakeholders and customers, and guided by Ofgem's framework, SSEN Distribution is focusing on three core priorities for the ED3 period and beyond:

1. Driving economic growth and enriching the communities and environments in which SSEN operates.

2. Developing agile and digitally-enabled electricity networks to meet diverse customer and energy system needs.

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3. Ensuring SSEN's business and network is resilient against growing challenges to efficiently deliver its plans.

The launch of its 'Empowering Communities, Enabling Growth' publication signals the start of a sustained period of engagement aimed at building a truly stakeholder-led business plan, which will be submitted to Ofgem next year. This process will include exploring the use of the ‘Six Capitals Framework' as a tool to capture the different types of value (societal, environmental, financial) generated by investment in distribution networks and services.

A key component of preparing networks for increased electrification and societal decarbonisation is SSEN's Strategic Development Plans (SDPs). These act as long-term blueprints outlining electricity system needs up to 2050 and will be updated annually to reflect changing energy projections. The SDPs will also serve as a crucial link to the National Energy System Operator’s (NESO) emerging work on Regional Energy Strategic Plans (RESP).

SSEN reiterated its commitment to delivering decarbonisation affordably and fairly, stating that the most efficient energy transition involves long-term planning to unlock economies of scale and lower overall costs for consumers. The company will further explore this, alongside efforts to maximise the opportunities of a just transition, such as creating low-carbon jobs, during the development of its business plan.

Chris Burchell, SSEN Distribution's Managing Director, said: "The importance of distribution networks has never been clearer and, as we approach the critical ED3 period, we are also clear about our role; to develop our network and services to empower communities and enable growth. By doing this, we'll help families and communities realise the societal and economic benefits we know decarbonisation will bring."

He added: "With that goal as our guide, this document sets out our long-term priorities and our emerging thinking for the next regulatory period. This is intended to start an open and honest conversation with our customers and stakeholders about what they want to see us prioritise and develop in ED3, helping us build a truly customer- and stakeholder-led business plan. We'll continue to work proactively with Ofgem in the coming months to help develop a price control framework for ED3 which gives us the solid basis to deliver these plans for the people and places we're proud to serve."

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