How will SP Energy Network’s RIIO-T3 Investment Plans Impact the Wider UK Economy?

This briefing discusses CEP’s analyses of how the wider UK economy could be affected by the investment on the electricity transmission network proposed by SP Energy Networks, as part of their business case ahead of the upcoming RIIO-T3 price control period and linked to the Ofgem growth duty. We find that the proposed investment has the potential to drive and sustain wider economic and social benefits in the UK economy. Our analysis supports the need for investment, as an alternative reactionary investment could lead to worse economy-wide outcomes. However, the magnitude of the potential outcomes will also depend on the presence and severity of any labour and supply chain constraints and can be maximised if these constraints are reduced.