Strategic report
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25 OCU Group Annual report and financial statements 2026
Operational review continued United Kingdom market review | Power Transmission & Distribution
Market conditions continued The transmission market presents a significant growth opportunity, with investment planned under Ofgem’s RIIO – T3 price control for 2026 to 2031 expected to exceed £80bn, approximately 3.5 times the level of the preceding control period. National Grid Electricity Transmission’s business plan alone identifies £9.6bn of investment in East Anglia and £8.6bn in the North East, including 23 new substations and 22.5 GW of new generation connections across the two regions.
Looking ahead In distribution, the priority is to continue delivering ED2 commitments and prepare with clients for the transition towards ED3, while increasing market share through reliable performance, substation capability and local workforce density. In transmission, the priority is managed growth: building from the Orkney and SSE credentials, transformer capability, and National Grid qualification into a balanced portfolio of substations, underground cables, overhead lines and specialist civils. Across both, the Group will continue to connect, build and maintain, recognising that today’s reinforcement and connection projects become part of tomorrow’s recurring asset base.
OCU is principal contractor on the North Shetland Reinforcement Project, modernising the island's electricity network and increasing capacity to support future demand. The program includes 43 km of underground cable, two new switching stations, upgrades to existing substations and overhead line reconfiguration. Careful engineering and route optimisation enabled the underground cable installation to avoid environmentally sensitive areas while delivering critical network infrastructure across a challenging island environment. The project demonstrates how OCU combines engineering excellence and environmental stewardship to deliver value for clients and end consumers, while strengthening the long‑term resilience of critical electricity infrastructure. Case study North Shetland Reinforcement Project Shetland, Scotland | Power Transmission & Distribution | Client: SSEN Distribution Case study | UK | Active project
Our move into transmission is an extension of capabilities clients already know: safe network delivery, high-voltage engineering, substations, cabling and disciplined mobilisation. The opportunity is substantial, but our approach will remain selective. We will grow where our technical competence, regional resources and delivery model give us a clear advantage and where risk can be understood at the outset. Adrian O'Sullivan Chief Operating Officer, OCU Utilities
Underground cable route
New switching stations
HDD crossings
Access and peatland engineering
43 km 2
5
c.20 km
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