SSEZY SSE PLC (PK)

By Jaime Llinares Taboada

The U.K. energy regulator said in a document published Wednesday that there is a clear consumer benefit and a clear case in the project to build two subsea power cables between Scotland and England.

Ofgem said the project would have an estimated cost of 3.4 billion pounds ($4.45 billion) and would be the largest electricity transmission project in the recent history of Great Britain.

"We consider there is a clear consumer benefit in the Eastern HVDC projects progressing and that a clear case has been made for the two proposed HVDC links that form the Eastern HVDC projects," the regulator said.

The first link has a capacity of 2 gigawatts and is a partnership between National Grid PLC and ScottishPower Ltd. It will run from Torness in Scotland to Durham County in England, with 176 kilometers of offshore cable.

The second link, also with a capacity of 2 gigawatts, is to be developed between National Grid and SSE PLC. It will start at Peterhead in Aberdeenshire and terminate at Drax in North Yorkshire with 440 kilometers of undersea cable.

"Ofgem's recognition of their benefit and the likely delivery model is encouraging. Final approval will offer opportunities for job creation, economic growth and consumer savings--at the same time as delivering the essential infrastructure required for meet the U.K.'s climate targets," said Chris Bennett, Interim President at National Grid Electricity Transmission.

The watchdog has opened a consultation on the project until May 4.

Shares in National Grid at 1230 GMT were up 0.4%. SSE was up 1.5%.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

March 30, 2022 09:02 ET (13:02 GMT)

SSE (PK) (USOTC:SSEZY)
Historical Stock Chart
From Feb 2025 to Mar 2025

SSE (PK) (USOTC:SSEZY)
Historical Stock Chart
From Mar 2024 to Mar 2025