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’re developing our Community Benefit 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.
Community Benefit Funding will be a critical element of future strategic transmission projects and our RIIO-T3 Business Plan. We have started to look at how we utilise the work that we have already undertaken in this area and align our Community Benefit Funding proposals with our stakeholder needs.
Community Benefit Consultation
We have shared our initial proposal in our Community Benefit Consultation and our RIIO-T3 Community Benefit plans will be shaped by the feedback we received.
The consultation is now closed. We would like to thank all community members and stakeholders who shared their views to help us develop plans that truly reflect community needs.
What is next?
We are currently developing our RIIO-T3 Business Plan where we will outline our Community Benefit plans for the upcoming RIIO-T3 Price Control period of 2026-2031.
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 are still developing our plans for the upcoming RIIO-T3 price control period (2026-2031) 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 impacted communities.
How will it work?
We have shared our initial proposal in our Community Benefit Consultation. We are using the feedback we received from stakeholders to develop our plans for the upcoming RIIO-T3 price control period (2026-2031). Our Community Benefit Funding plans will be published as part of our RIIO-T3 Business Plan in December 2024.
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 Benefit Funding plans will be published as part of our RIIO-T3 Business Plan in December 2024.
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.