Ofgem proposes direction on SHEPD contribution to Shetland link
Ofgem moves to formalise Scottish Power's distribution network share of the Shetland Transmission Link under licence conditions.
By Matthias Blank · drafted with the Vantage newsroom system, approved before publication
Ofgem published a proposed direction on 15 June 2026 approving Scottish Hydro Electric Power Distribution's (SHEPD) contribution to the Shetland Transmission Link under Special Condition 3.16 of the Electricity Distribution Licence. The direction formalises how distribution-level costs are allocated for the subsea interconnector, which will bring Shetland onto the GB transmission network for the first time.
The Shetland link has regulatory significance beyond its geography: it establishes a cost-allocation precedent for remote island connections under existing distribution licence frameworks, rather than requiring bespoke primary legislation. The proposed direction is open to scrutiny before it is finalised.
In a separate publication on the same date, Ofgem released the Feed-in Tariff Levelisation Report for October to December 2025, detailing total FIT payments made by licensees across that quarter. No headline figures were included in the release summary; the full payment data is contained in the attached report document.
Source: Ofgem
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