OCU Group awarded major SSEN Capital Delivery contract

OCU has been awarded a coveted position on Scottish and Southern Electricity Networks (SSEN) Distribution’s Capital Delivery Partnership GSP Framework. 

The appointment will see OCU complete improvement works alongside two other contracting organisations across SSEN’s network in central southern England, with each business responsible for a regional delivery zone. 

It follows the introduction of the new RIIO-ED2 price control which SSEN began operating under in April 2023, in accordance with Ofgem’s December 2022 final determination.

Running until March 2028, the price control will see SSEN Distribution deliver £3.6bn of baseline expenditure – an increase of 22% on ED1 levels – with the potential of up to £700m of additional funding.

The new price control period has accelerated SSEN Distribution’s major investment programme across both of its networks, delivering continued improvements in performance, additional benefits for customers and supporting future earnings growth. It will also facilitate the works required for future net zero growth and increased asset resilience. 

With over £1bn investment across the programme of work, this is the largest contract award ever issued by SSEN Distribution. 

Vince Bowler, Managing Director of OCU Services, said:

“This programme of work is a significant step in OCU’s ambition to have a positive impact on the UK energy network and leave a lasting legacy for future generations. It will also provide major opportunities for the business to expand its services within the sector. We look forward to working with SSEN to deliver this significant programme of work.”

SSEN Distribution is working closely with the regulator and other stakeholders to ensure that the price control has the agility and flexibility required to deliver infrastructure in line with net zero requirements. This is aided by a three-point strategy centred on growing the Regulatory Asset Value (RAV) and underpinning the net-zero transition; enabling continual targeted improvements in customer performance and operational efficiency, and taking the lead on delivering the future energy system.

Under the RIIO regulatory regime, SSEN Distribution is incentivised to further improve service levels for its customers. Incentive rewards will typically be collected two years after they are earned. In RIIO-ED2 the ability to secure higher incentive returns has been tightened in comparison to previous price controls.