To counter the upward pressuresthis might place on network charges,we always work hard to temper anypotential price increases by focussingcontinually on operating as efficientlyas possible. For example, we will besmart and efficient in how we plan ourinvestment programmes, seeking outall opportunities to add extra capacityrequired for the future as we replace,refurbish or maintain parts of thenetwork in need of attention. We willalso seek to finance our business asefficiently as possible and togetherwith the Utility Regulator, we willexplore how we can spread the cost ofthese investments in the most fair andappropriate manner between customerstoday and customers of the future.Another factor which we needto be aware of is that we expecttransformational changes in societysuch as the electrification of transportand heating, to lead to greater electricityconsumption in future compared totoday, which will help spread the costsmore widely. We are estimating thatthe volume of electricity transportedacross our network will on average bearound 10 per cent higher during RP7compared to average levels in RP6 aselectricity displaces fossil fuel usage.This will put downward pressure onaverage network charges such that weestimate we can deliver the increasedlevels of investment during RP7 whilstkeeping distribution network unitcharges in line with those of RP6 in realterms.end up paying more for their electricityas they consume more, they will nothave to pay for home heating oil if theirhomes are heated with a heat pump orfor petrol and diesel for their cars if theydrive an EV. We are currently workingwith economic advisers to assess theimpact of these off-setting cost savings,and how we can facilitate customersrealising any such savings in future. Thefindings will be available soon and willfeature as part of our final proposals forRP7 which are due for submission tothe Utility Regulator in March next year.In addition, the wholesale cost ofelectricity should be less driven bymovements in the price of fossil fuels,if and when there is more renewablegeneration on the system increasingour self-sufficiency with less relianceon imported fossil fuels to generateelectricity. For example, consultantsat KPMG have estimated thatelectrification of heating and transportwould displace £1.4 billion of annualexpenditure on imported fossil fuels by204015.In addition, KPMG concluded that thecapital investment needed to electrifysociety would have other indirectbenefits, leading to an estimatedtotal Gross Value Added of £18.8billion. The employment created fromthe capital investment programmeis significant, forecasted to reachup to 5,000 full-time jobs over theinvestment period.The displacement of fossil fuel usageis important as, while customers mayQ25. In this context, we would welcome stakeholder feedback on ouranalysis of the monetary impact of our proposals and the benefits it willbring to our customers and wider society.Figure 15 – Potential benefitsfrom greater electrification inNorthern IrelandCreate JobsCreate at least 5,000direct jobsReduction in GHGsSupports delivery of 82%by 2050 helping to reduce800 deaths per year due toair pollutionDisplace ImportedFossil Fuels£1.4bn pa for localeconomy by 2040Investment Opportunity£9.6bn over two decadesinc £600m for electrificationof transport and £1.7bnin the electricity networkinfrastructureEconomic GrowthLeads to £18.8bn GVA15“Electrification: Economic Opportunity for Northern Ireland”, July 2021. Available at –https://www.nienetworks.co.uk/documents/future-networks/210903_nie-electrification_vprint.aspx56Northern Ireland Electricty Networks
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