Denny to Wishaw 400kV Reinforcement Project: Early Construction Funding
This consultation is open for responses
Closes 15 Apr 2026 (10 days remaining)
Summary
Ofgem is consulting on Early Construction Funding for Scottish Power Transmission's Denny to Wishaw 400kV reinforcement project under the ASTI re-opener mechanism. The consultation closes 15 April 2026 with responses to be submitted to transmission.acceleration@ofgem.gov.uk. This follows SPT's application for accelerated funding to begin construction ahead of the normal RIIO price control cycle.
Why it matters
Early Construction Funding allows transmission owners to recover costs before projects are formally included in price controls, transferring construction risk from developers to consumers earlier than usual. This mechanism favours incumbents by providing capital certainty while socialising pre-construction risks that would otherwise sit with network companies.
Key facts
- •Consultation period: 17 March 2026 to 15 April 2026
- •Project: Denny to Wishaw 400kV reinforcement
- •Mechanism: ASTI re-opener Early Construction Funding
- •Applicant: Scottish Power Transmission
Timeline
Areas affected
Related programmes
Memo
What this is about
Scottish Power Transmission has applied for Early Construction Funding to start building the Denny to Wishaw 400kV reinforcement project ahead of the normal RIIO price control cycle. This consultation presents Ofgem's minded-to position on whether to approve funding through the ASTI re-opener mechanism.
The project involves upgrading transmission infrastructure between Denny and Wishaw substations in central Scotland. SPT is seeking to begin construction now rather than waiting for the next price control period, arguing this will accelerate delivery of critical grid reinforcement needed for net zero. Under Early Construction Funding, consumers would start paying for the project through transmission charges before it formally enters the regulated asset base, effectively transferring construction risk from SPT to network users earlier than usual.
Options on the table
The consultation presents Ofgem's preliminary assessment rather than distinct policy options. However, the fundamental choice is binary:
Approve Early Construction Funding
Under this approach, SPT would receive regulatory approval and funding certainty to begin construction immediately. The company would recover costs through transmission charges as the project progresses, with consumers bearing construction risks including potential cost overruns or delays. This accelerates project delivery but removes the normal discipline of competitive price control processes where projects compete for inclusion based on demonstrated need and efficient costs. Network users pay earlier and potentially more, while SPT gains capital certainty and reduced commercial risk.
Reject Early Construction Funding
The alternative is requiring SPT to wait for the standard RIIO process where the project would compete alongside other investments for inclusion in the next price control. This maintains normal regulatory discipline around need demonstration and cost efficiency, with construction risk remaining with the transmission owner. However, it delays project delivery which could constrain renewable energy connections and net zero progress. SPT would bear full construction risk and funding uncertainty, while consumers pay later but potentially face higher system costs from delayed grid reinforcement.
Questions being asked
The consultation document is not fully accessible from the provided text, but based on the description, questions likely focus on:
Project justification and timing
Questions around whether the Denny to Wishaw reinforcement represents critical infrastructure that justifies bypassing normal price control processes, and whether the proposed timing aligns with genuine system needs rather than commercial convenience for SPT.
Cost efficiency and risk allocation
Assessment of whether SPT's cost estimates are reasonable and efficiently derived, and whether the proposed risk allocation between company and consumers represents appropriate value compared to standard regulatory arrangements.
Process and precedent implications
Evaluation of how approving this application might affect future ASTI applications and whether the Early Construction Funding mechanism is being applied consistently with its original policy intent of enabling genuinely strategic transmission investments.
How to respond
Submit responses by 15 April 2026 by emailing transmission.acceleration@ofgem.gov.uk. Ofgem particularly welcomes views from consumer groups, stakeholders impacted by the project, those with interests in transmission infrastructure costs, and transmission owners. Responses from other stakeholders and the public are also welcome.
The consultation seeks input from anyone interested in new transmission infrastructure, meeting net zero challenges, and competition in onshore transmission networks. After the consultation closes, Ofgem will consider all responses before making its final decision on SPT's Early Construction Funding application.
Source text
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This document outlines the scope, purpose, and questions of the consultation and how you can get involved. Once the consultation is closed, we will consider all responses. ## Who should respond We would like views from people with an interest in new transmission infrastructure, meeting the net zero challenge, and competition in onshore transmission networks. We particularly welcome responses from consumer groups, stakeholders impacted by the projects, stakeholders with an interest in the costs of electricity transmission infrastructure, and transmission owners. We would also welcome responses from other stakeholders and the public. ## How to respond Submit your response by 15 April 2026 by emailing transmission.acceleration@ofgem.gov.uk. ## Consultation documents [Denny to Wishaw 400kV Reinforcement Project (DWNO) [PDF, 300.13KB]](/sites/default/files/2026-03/DWNO-ECF.pdf) Get emails about this page [Print this page](/consultation/denny-wishaw-400kv-reinforcement-project-early-construction-funding) ### Share the page * [Share on Facebook](http://www.facebook.com/share.php?u=https://www.ofgem.gov.uk/consultation/denny-wishaw-400kv-reinforcement-project-early-construction-funding) * [Share on Twitter](https://twitter.com/intent/tweet?text=Denny%20to%20Wishaw%20400kV%20Reinforcement%20Project%3A%20Early%20Construction%20Funding&url=https://www.ofgem.gov.uk/consultation/denny-wishaw-400kv-reinforcement-project-early-construction-funding) * [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://www.ofgem.gov.uk/consultation/denny-wishaw-400kv-reinforcement-project-early-construction-funding) Close Notify me Would you like to be kept up to date with *Denny to Wishaw 400kV Reinforcement Project: Early Construction Funding*? subscribe to notifications: Email [](/ "Home") ### Subscribe to receive our latest news and communications [Subscribe now](https://email.ofgem.gov.uk/p/1QCB-1GX5/subscribe) ## Contact us * [Contact us](/about-us/get-in-touch/contact-us) * [Publications](/publications) * [Schemes register](/log-your-scheme-register) * [Electronic public register](https://epr.ofgem.gov.uk/) ## Other * [Cookies](/cookies) * [Ofgem privacy policy](/ofgem-privacy-policy) * [Website accessibility](/website-accessibility) * [© Ofgem 2026](/c-ofgem-2026) Follow us * [X](https://x.com/ofgem) * [LinkedIn](https://www.linkedin.com/company/ofgem) * [Facebook](https://www.facebook.com/ofgem) Close