Energy regulator Ofgem has refused a total of £142 million of spending on electricity infrastructure projects put forward by Scottish utilities.
Announcing its decision on funding requests by electricity distribution network companies, Ofgem said it was refusing a £30 million bid from Scottish & Southern Energy Networks for cable replacement at Pentland Firth East which supplies electricity from the mainland to the Orkney Islands via the island of Hoy. Ofgem said it had not been shown that the proposed solution is economic and efficient.
The watchdog also turned down a £70 million request from ScottishPower Energy Networks for cable repairs as it considers that the level of investment requested is not justified. It also refused a £42 million request from SPEN for work to increase network capacity in anticipation of electric vehicle uptake. Ofgem said a need for the work to be carried out has not been established.
In total Ofgem has refused £258 million of projects but allowed £64 million of funding requests including £16 million for SSEN for work in connection with the electrification of the Great Western Railway line and £45 million for street works activities by companies including SPEN.
Companies are allowed to recover costs for approved work through bills.
