We’re upgrading our electricity system to support the transition to cleaner energy and enable homes and businesses to adopt low-carbon solutions across the country. But it’s not just about improving the infrastructure, it’s about people too. We want to take our communities on this journey with us and that’s why we have developed our community funding plans as part of our RIIO-T3 Business Plan.
What is RIIO-T3?
RIIO-T3 (Revenues = Incentives + Innovation + Outputs - Transmission 3) is a regulatory framework used by our regulator Ofgem to set price controls for the electricity transmission operators like us. The RIIO-T3 price control period will run from April 1, 2026, to March 31, 2031. This period is designed to ensure that transmission network companies can plan and invest in their infrastructure to meet future demands, support innovation, and deliver reliable services while keeping costs fair for consumers.
We have already gained extensive experience in this area through our Green Economy Fund and Transmission Net Zero Fund and we will apply lessons we learned to our future plans. We have carried out research and engaged with stakeholders across the areas we serve to ensure these plans are fit for purpose and are aligned to needs and aspirations of different communities.
Our community funding plans have been published as part of our RIIO-T3 Business Plan. This is where we have outlined how we will support our communities to help them find solutions to local challenges, turn their ideas into feasible projects and unlock long-term benefits through funded projects. Read our Business Plan
We have published a 100-page Business Plan accompanied by a suite of supporting documents including annexes and data templates.
Read our Business Plan
Have your say
We want to know your views so we can deliver the best plan possible. Submit feedback via our online survey or take part in Ofgem's 'Call for Evidence' from 18 December 2024 to 10 February 2025.
We will also be hosting a public RIIO-T3 webinar on 21 January 2025. Find out more and register to attend.
The scale and scope of our Community Benefit Funding will be determined by the UK Government’s guidance which is yet to be published. We expect Department for Energy Security and Net Zero to publish guidance on Community Benefits for electricity transmission network infrastructure ahead of the start of RIIO-T3 Price Control.
To stay up to date with the development of our Community Benefit Funding, please Register as a Stakeholder (select 'Community Funding' as one of your interests).
Frequently Asked Questions
What are community benefits?
Community benefits in the context of network infrastructure mean extra ways for local communities to benefit from having a new electricity infrastructure project in their area. These benefits are an additional mechanism that is separate from the usual planning process. They help enhance the local economy, society, and environment to leave a positive legacy.
Who will be eligible for Community Benefit Funding?
Communities affected by our new Transmission infrastructure projects are most likely to be eligible for the Community Benefit Funding. However, government guidance will specify which projects will be eligible for funding.
Community Benefit Funding will be delivered by Transmission network operators for their licence area. Our licence area covers central and southern Scotland. SSEN Transmission covers north of Scotland and National Grid Electricity Transmission covers England and Wales.
When will Community Benefit Funding open for applications?
Our Community Benefit Funding is not in place yet as the government guidance and regulatory framework haven’t been published. We have shared our plans for the upcoming RIIO-T3 price control period (2026-2031) in our RIIO-T3 Business Plan and will announce any future updates on our website.
How much funding will be available?
Level of funding will be defined by the government guidance. Size and scale of eligible projects will determine how much funding is available for the host communities.
How will it work?
We have outlined how we intend to deliver community funding from 2026 to 2031 in our RIIO-T3 Business Plan. Further information about how this funding will work is available in the Environmental Annex.
How have you used feedback from Community Benefit Consultation?
We have used the stakeholder feedback to shape our Community Benefit Funding plans for RIIO-T3. Our community funding plans have been published as part of our RIIO-T3 Business Plan. In the Environmental Annex, we have explained in more detail how that feedback informed our plans.
Will households receive direct benefits such as bill discounts?
Our Community Benefit Funding will only offer funding for wider, shared community benefits. We will fund community-led initiatives which aim to deliver lasting social, environmental and economic benefits for the local communities.
We are expecting the UK Government’s Department for Energy Security and Net Zero to announce their plans for direct benefits like electricity bill discounts separately. The scheme design is still under development.