uk power networks business plan

UK Power Networks unveils finalised £4.6 billion business plan for net zero

• December 2, 2021

UK Power Networks is set to accelerate towards net zero as part of its next business plan, which it has now submitted to Ofgem. 

The £4.6 billion plan covers the years from 2023-2028, and while the company doesn’t plan to achieve all of its net zero goals by the end of it, UK Power Networks is putting into place safeguards to ensure that nobody is left behind in the transition. 

As part of this safeguarding plan, UK Power Networks has committed to founding a new £20 million Foundation to support communities. The Foundation will include £9 million to help 500,000 customers in or at risk of entering fuel poverty, while the remaining £11 million will be part of a social fund to help customers in vulnerable circumstances through the energy transition to net zero.

The cost of achieving net zero has been a worry for many, as the need to adopt new technologies to allow for decarbonisation comes at a hefty expense. While the Government promised to help out with the Green Homes Grant, the take-up of the scheme was appalling, with the scheme subsequently dropped like a lead balloon. 

However, while the cost of getting to net zero won’t be cheap, UK Power Networks said that it will likely lead to cheaper energy bills. In fact, the company is set to cut its portion of the energy bill by 15% in real terms, while increasing its investment in the network. 

That increased investment is already being seen, with the company upgrading older infrastructure to get ready for the onslaught of heat pumps and electric vehicle chargers. Residents in Purfleet recently received a new transformer as part of UK Power Networks’ existing upgrade programme , but there are no signs that upgrades like these are going to slow down anytime soon. 

In fact, UK Power Networks is setting up a Local Area Energy Planning framework co-developed with regional authorities to assess the energy issues they face. The firm’s dedicated team would help 127 councils use this framework to convert ‘climate emergencies’ into practical plans.

Additionally, UK Power Networks has confirmed that it will create a new £12 million Digital Skills Academy to build best-in-class specialist energy system and digital skills, deliver 510 NVQs in leadership and management, and 200 industry-accredited apprenticeships

While UK Power Networks would describe its new business plan as ambitious, the final decision is down to Ofgem, which will now consider the plan. 

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Additional Information

• Overview (current)
• Why are we producing a Business Plan now? (current)
• Keys to success (current)
• Facilitating Net Zero carbon emissions (current)
• Additional Information (current)
• Read our Business Plan (current)

PDF downloads

Please find a list of appendices and additional information below, please click on the title you want to view.

Appendix 1 Glossary

Appendix 2 Our RIIO-ED1 track record

Appendix 4 Social Contract

Appendix 5 Our RIIO-ED2 customer and stakeholder engagement programme

Appendix 6 CEG challenge

Appendix 7 CVP details

Appendix 8 Our vulnerability strategy

Appendix 9 Our Major Connections strategy

Appendix 11 Reliability

Appendix 13 Workforce resilience strategy

Appendix 14 Climate resilience strategy

Appendix 15 Safety – RIIO-ED1 context and RIIO-ED2 commitments

Appendix 16 Our Environmental Action Plan

Appendix 17a Digitalisation strategy

Appendix 17b IT & telecoms strategy and delivery

Appendix 17c Data best practice

Appendix 18 Our DSO Strategy

Appendix 18a Network visibility strategy paper

Appendix 19a Whole systems strategy

Appendix 19b Local area energy planning framework

Appendix 20 Innovation strategy

Appendix 21b 2020 distribution future energy scenarios

Appendix 21c DFES stakeholder reports

Appendix 22 Procurement code of conduct

Appendix 25a Financial Information

Appendix 25b The cost of equity for RIIO-ED2

Appendix 25c Review of Ofgem’s RIIO-ED2 additional costs of borrowing

Appendix 25d Ongoing Efficiency Improvement at RIIO-ED2

Appendix 25e RIIO-ED2 real price effects

Addendum to Appendix 25e

Appendix 27 Letters of endorsement

Appendix 30 Appendix 30 Losses strategy

RIIO-ED2 UK Power Networks Redaction Statement

New vision includes £20 million Foundation fund

UK Power Networks today set out how it will ensure nobody is left behind in the transition to Net Zero, by planning a new £20 million Foundation to support communities.

The fund is among many new initiatives in the firm’s £4.6 billion Business Plan for 2023-2028 to Ofgem, which has been submitted to industry regulator Ofgem. The number of ‘fuel poor’ customers struggling to pay their energy bills in London, the East and South East is now over 900,000 so the company is taking a twin track approach of reducing its part of the energy bill and targeting investment where it is needed - while at the same time helping the most vulnerable people in society.  The UK Power Networks Foundation will include £9 million to help 500,000 customers in or at risk of entering, fuel poverty. The remaining £11 million will be part of a social fund to help customers in vulnerable circumstances through the energy transition to Net Zero. The firm’s plan also includes: • 15% reduction (in real terms) in its part of the energy bill whilst increasing investment in the networks, to set the lowest cost pathway to Net Zero  • Enabling people to connect low carbon technologies including increasing numbers of Electric Vehicles and heat pumps, and support chargepoint installers to connect rapid EV chargers every 30 miles across its footprint area • A Local Area Energy Planning framework co-developed with regional authorities and relevant to the energy issues they face. The firm’s dedicated team would help 127 councils use this framework to convert ‘climate emergencies’ into practical plans  • Creating a new £12 million Digital Skills Academy to build best-in-class specialist energy system and digital skills, deliver 510 NVQs in leadership and management, and 200 industry-accredited apprenticeships  • Ensuring all customers in vulnerable circumstances only need to register once for the free extra help available under Priority Services, through new automated links with other utilities  • Introducing a new Social Contract bringing together all its commitments in one place, and updating its Articles of Association to embed a clear public interest commitment  The firm, which employs 6,000 staff, is a Top 25 UK employer and earlier this year it became the first network operator to partner with the Levelling Up Goals initiative to promote equal opportunities for employees and the local communities it serves. Director of strategy and customer service Sul Alli said: “Our plan very clearly builds on our  Vision to be a respected and trusted corporate citizen, acting in the best interests of our customers and the communities we serve. These new initiatives demonstrate how social purpose is at the  heart of all we do, and align with our ambition to be the most socially and environmentally- responsible network operator.” He added that the Plan also has the flexibility to adapt so that the electricity network enables low carbon technologies like heat pumps and electric cars to be used, regardless of the speed and scale that they are adopted by the public. The Business Plan will now be considered by Ofgem and is available online at https://ed2.ukpowernetworks.co.uk/

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• UKPN's 2023-2028 Business Plan

Introducing the Independent Stakeholder Group for UK Power Networks

The ISG for UK Power Networks has been in place since 2019, (formerly the Customer Engagement Group), is mandated by Ofgem to ensure that the consumer voice was properly embedded in the company’s Business Plan for 2023-28 and observing and critiquing how the company was making sure it would not be a blocker to the achievement of Net Zero. You can read our report on the UK Power Networks' final RIIO-ED2 Business Plan here.

Ofgem described UK Power Networks as “the frontier performing company “and UK Power Networks credited the ISG as having made a significant contribution to this achievement.

Now UK Power Networks has moved into delivering its plan, our role has changed to one that we characterise as being a “critical friend” providing input to enable UK Power Networks to stay “honest and ahead of its peers”. In practical terms we will achieve this by observing and inputting so that UK Power Networks is:

• Delivering its RIIO-ED2 Business Plan commitments;
• Responding swiftly and effectively to external developments; and
• Keeping pace and delivering in line with the expectations of its customers now and in the future.

Introducing our Chair

Much has changed since UK Power Networks submitted its RIIO-ED2 Business Plan. Its customers and stakeholders are facing the consequences of: the cost of living crisis with energy bills unlikely to return to historical levels; a doubling in the number of those in circumstances that might make them vulnerable; a continued focus on decarbonisation and greatly increased concern about the security of energy supply and the resilience of the networks; and the continuous emergence of technology changes and opportunities from data, digitalisation and AI. Against this backdrop, we will focus our efforts on UK Power Networks' performance. We will seek to add value by challenging how the company is addressing these aspects of the external environment and making trade-offs in the interests of consumers now and in the future. Ann Bishop Chair, ISG for UK Power Networks

Providing a safe and reliable electricity supply to our 8.5 million customers will always be our top priority, but coupling this with facilitating Net Zero in the fast paced, changing nature of the external environment we operate within presents new challenges and opportunities. I am glad to be continuing to invite independent challenge to our management of our networks to ensure we continue to deliver industry leading service, adapting, and being live to the changing needs of the customers and businesses we serve.

The ISG consists of five permanent members, providing a strong spread of expertise across energy, regulation and consumer advocacy. But as a group we remain flexible to draw upon additional expertise to supplement the group with specific knowledge as required to ensure we can provide valuable input and challenge to UK Power Networks as the environment and priorities change around them.

Ann has over 30 years’ experience in regulated utilities working with investors, senior leaders, customers and stakeholders in water, energy, telecoms, transport and social housing and with government agencies and regulators in the UK, the Republic of Ireland, Australia and the Far East.

She is the chair of Indepen, a consultancy she founded that is known for promoting constructive challenge to the status quo. She has convened and chaired cross disciplinary groups to address controversial issues in the public, private and third sectors and has a wealth of governance experience from working with boards and leading panels to review and challenge the thinking, strategies and plans of infrastructure businesses.

Ann lived and worked in UK Power Networks’ regions for over three decades and understands the challenges facing its rich diversity of customers and stakeholders.

Before founding Indepen, Ann worked in the Strategy Group in Deloitte’s management consultancy division. This followed roles in marketing and corporate finance with Natwest Investment Bank and Chase Manhattan Bank and in industrial relations with Overseas Containers Limited.

From 2010-2020 Ann was an independent director and the chair of the remuneration committee on the board of Leeds Metropolitan University (now Leeds Beckett University); deputy chair of Opera North; an Ambassador for Wellbeing of Women; and a Commissioner on the London First Infrastructure Commission. From 2020, as well as chairing the Independent Stakeholder Group for UK Power Networks, she was an independent non-executive director on the Boad of Affinity Water. She resigned from this position in 2022.

Dr Jeff Hardy has over 20 years of academic, policy and business experience in sustainable energy. He has helped clients worldwide understand the implications of zero carbon futures on business models and strategy, consumers, customers and citizens, policy and regulatory frameworks and energy systems.

Jeff is the Director of Sustainable Energy Futures Ltd, a consultancy providing clients with zero-carbon energy transformation advice, analysis and challenge. He is also Deputy Chair of the UK Power Networks Independent Stakeholder Group and a visiting researcher at the Grantham Institute at Imperial College London.

Previously, he led a team in the UK Energy Revolution Research Consortium examining the policy and regulation of smart local energy systems. He has also been a Non-Executive Director of Public Power Solutions, Environment Mission Lead at Zinc, Head of Sustainable Energy Futures at the GB energy regulator, Ofgem and Head of Science for Work Group III of the Intergovernmental Panel on Climate Change. He’s also worked at the Department of Business, Energy and Industrial Strategy, the UK Energy Research Centre, the Royal Society of Chemistry, the Green Chemistry Group at the University of York and Sellafield as a research chemist in a nuclear laboratory.

Peter is an experienced leader, director, and consultant whose skills have been developed during a varied career of more than 35 years in the energy industry including twelve years’ experience at Board level in major plcs and a further 10 years as founder, CEO and then Chairman of Haven Power.

He began his career at Norweb (now Electricity North West) followed by Eastern Electricity and is a graduate of Cambridge University, a Chartered Engineer and a Member of the Chartered Institute of Marketing.

Peter has experience of electricity Generation, Distribution, Trading and Supply including extensive experience as a consultant of supporting Customers, Generators and other stakeholders in their dealings with Distribution Network Operators. He is passionate about delivering for customers and ensuring that business decisions take proper account of customer interests. Peter led the ISG’s work on Reliability and Resilience as part of the last price review.

Nicholas Pollard is an experienced Chair and CEO who has led businesses across the UK, Middle East, and Asia-Pacific.

A purposeful leader with a flair for turnarounds, Nick made a real difference as an executive at Railtrack, Network Rail and Skanska, before leading turnarounds as the CEO at Bovis Lend Lease, Balfour Beatty Construction and the complex restructuring and turnaround of EfW operator, Cory Riverside (which sold within 3 years for a sum in excess of £1.5bn).

More recently Nick served as NED at Interserve Group, where he helped lead Interserve through a pre-pack administration, complex restructure and series of UK and overseas disposals.

Nick now continues as Chair of Tilbury Douglas Group (a UK construction group, rescued and turned around after a third party buy-out of the pension scheme negotiated with its Trustees enabled its exit from Interserve into new ownership).

These roles were all characterised by tough business challenges: the need for tight governance; regulatory and funding limitations; complexities of major capital programmes; significant risks; operational issues; contractual difficulties and safety critical operation of assets and networks in the utility and transport sectors.

Nick is also the Strategy Advisor to BioZeroC : a climate-tech start-up using biotech and scalable process technology to create carbon negative concrete and associated construction materials.

Nick has previously served as advisor to the UK Government and TfL in a number of different roles.

Nikki Stopford has 25 years of experience in advocating and raising industry standards for consumers. She has a significant background in consumer research, engagement, advocacy and publishing, and in the development of digital products and services.

She is experienced in the delivery of fair, trustworthy, and evidence-based tools and services to help consumers and businesses make better choices and get better results.

She has held executive leadership roles running successful digital and content-led consumer-facing businesses that have engaged and advocated for millions of consumers. She is the co-founder and joint CEO of Consumer Voice [consumervoice.uk] - a newly launch website and consumer community in the UK dedicated to promoting awareness of and engagement with group legal actions.

For over 10 years she was Group Director of Research and Publishing at Which?, responsible for cross-sector research, investigation and testing programmes designed to help people make confident choices about the products and services they buy and use.

She is the current Chair of the British Standards Institute (BSI) Consumer Forum which brings together consumer advocacy organisations, government departments, regulators and enforcement agencies to strengthen the consumer voice in industry standards by sharing emerging data and insight. She regularly features in broadcast media - including as part of the BBC Rip Off Britain consumer expert team.

She is currently developing a new online content website and associated consumer community to promote awareness of and engagement with legal claims representing UK consumers.

John Hargreaves is a Director of Indepen, a consultancy working with infrastructure businesses facing the challenges of regulation, deregulation, competition and restructuring.

An economist, he has been a lecturer and a civil servant and has worked in management consultancy and corporate finance teams. He has advised regulated industries since privatisation through price reviews and industry reform, and has worked with infrastructure businesses in the UK, Australia, and SE Asia. Earlier in his career John led the mergers and acquisitions team in the corporate finance division of a major accounting firm and worked with UK government departments and agencies on policy towards urban transportation, education, health and social housing.

Martin Crouch is a former regulator and economist, with over 30 years’ experience in the energy sector. He introduced the first environmental incentives in electricity network regulation and created the model that has successfully promoted investment in electricity interconnection to support the transition to net zero.

Martin is the Managing Director of 4D Economics, a consultancy providing clients advice on regulation, infrastructure and innovation. He is an Associate with Sustainability First, a charity and think-tank focussed on social and environmental issues in the energy and water sectors.

Previously, he led teams at the GB energy regulator, Ofgem, responsible for network regulation, European strategy, wholesale markets, offshore wind, enforcement and innovation. Earlier in his career he worked for a major American electricity company and for a leading economics consultancy.

Martin is also a non-executive director of Heat Trust, the voluntary consumer protection organisation for district heating networks; and a strategic adviser to Ofwat, the water regulator.

Read the latest news from the ISG and its members.

The CEG response to Ofgem on the RIIO-ED2 Draft Determinations

CEG report on UKPN’s final RIIO-ED2 Business Plan

CEG Update on UKPN’s Initial RIIO-ED2 Business Plan

CEG for UK Power Networks responds to the RIIO-ED2 Methodology Consultation

Meet our members – Nick Pollard, Core Group member, Sustainability Working Group member, Resilience & Reliability Working Group member

Meet our members – Nikki Stopford, South Eastern CEG member and Customer Working Group member

Meet our members - Jeffrey Hardy – Core Group member, Sustainability Working Group Lead and Resilience & Reliability Working Group member

Meet our members – Peter Bennell, Eastern CEG member, Customer Working Group member and Resilience & Reliability Working Group Co-Lead

New website launched to support the CEG in its challenge process

get in touch

If you have an enquiry about the ISG or would like to share your experience of working with UK Power Networks, please contact us using this form. Please note this form should only be used to contact the ISG, we are independent of UK Power Networks.

If you wish to contact UK Power Networks directly, please visit www.ukpowernetworks.co.uk/help-and-contact or use the contact numbers on the right.

Power supply and maintenance

If you are a member of the public experiencing loss of power or are concerned about the safety of the electricity network, please call:

For enquiries such as:

• a new power supply or you need to make changes to your existing supply
• maintenance carried out near or on overhead power lines, for example cutting trees back from power lines or covering overhead cables to protect them

please contact UK Power Networks, the Distribution Network Operator (DNO) for London, the South East and the East of England on:

0800 029 4285

or visit UK Power Networks website

Digitalisation Strategy and Action Plan

Welcome to UK Power Networks’ Digitalisation Strategy and Action Plan Microsite. Here you can gain insight into our strategy and corresponding digital projects and initiatives, with updates provided every six months to provide an up-to-date view of our progress.

Whilst the full, detailed strategy is available for download , this site provides an interactive, high-level view of what we are planning, doing and delivering to advance our digital capabilities, products and services.

Stakeholder input is crucial in helping inform, iterate and effectively deliver our strategy. We are therefore always keen to receive your input and feedback. If you have questions or comments about our strategy, action plan or associated delivery, please contact us via: [email protected]

Intro and Executive Summary

UK Power Networks has set a clear intention of maintaining our position as the best performing network company in Great Britain. This is set against a backdrop of transformative change in the energy system and across society as we decarbonise every aspect of our economy.

We have established an ambitious business plan for the current RIIO-ED2 regulatory period that is built around seven keys to success in delivering on our customer and stakeholder priorities. Digital and data enabled technologies and capabilities are intrinsic in their delivery and everything we aim to achieve.

Our approach to digitalisation

Digital is often misinterpreted as only relating to information technology. Whilst that is of course an important component of digitalisation, we are clear that it is only a part of the equation. This is why our digitalisation strategy focuses on:

• People and Process – For digitalisation to be effective, we need to develop our people to foster their skills and capabilities. Equally, definition and implementation of effective and efficient processes ensures we provide flexible delivery, consistent service and reduced costs.
• Technology – The efficient and effective delivery and support of contemporary information technologies and systems, as well as user tools and devices, to facilitate leading digital products, services and solutions.
• Data and Information – Data is the lifeblood for any digital system and the communication medium by which people and machines interact, requiring interoperability to recognise, manage and exploit data as an asset.

Our digital aspirations

UK Power Networks aspires to be a leader in data and digital, within the energy industry and beyond. Our vision is to be a driving force, leading by example and motivating others. To deliver against this aspiration, we need to continually progress in all areas defined within our Digital Portfolio Framework. Whilst the framework is intended to remain stable for the years ahead, we expect the way we are set up to dynamically adapt with our experiences, new trends and the evolution of our customers’ and stakeholders’ needs.

The result is not only the direct delivery of new and improved products and services for our customers and stakeholders – providing choice, ease, convenience and satisfaction – but to also contribute to the overall advancement of the energy system, as well as other whole system vectors such as heat, transport, water and telecoms.

The digital energy environment

The extent and pace of change currently affecting the energy sector is unprecedented. That is both challenging and exciting, demanding us to respond in a manner that ensures that we realise the full range of opportunities presented. To achieve this, it is of the utmost importance that we understand the key influencing factors that we need to respond to. Set out below is a summary of what we recognise as these influencing factors, which have informed the shaping of our strategy and digital framework:

• DSO, Whole System and Net Zero – The development of digitally enabled, data-driven capabilities that allow infrastructure systems to share data and communicate in a common language to maximise performance.
• Rising Customer Expectations – Trends in digitalisation, digital services and data are driving rapid change across the whole of society and our economy.
• Digital Literacy – Requires us to develop and extend the capabilities of our people and embed cultural change.
• Open Innovation – The principle of presumed open establishes the need for energy sector participants to openly publish and share network and asset data.
• Cost Reduction – There is constant demand to deliver new and improved services that are cheaper, faster, greener and better.

Understanding and delivering for our stakeholders

We aim to gain a comprehensive understanding of the needs of our various stakeholders through proactive consultation across key groups, using insights to inform the shaping and prioritisation of our digital action plans. Our thoughts on the shape and direction of this are continually iterated and refined as we have worked to ensure our consultation and engagement activity is reflected in this strategy.

The way in which we engage takes on to ensure we maximise coverage and penetration in recognition of the fact that there is not a one-size fits all approach. We hold a range of engagement forums which target direct dialogue and debate with stakeholders on a range of topics, seeking their views, input and challenge to inform, evaluate and drive our thinking and action. This includes those within the energy industry, throughout the wider utilities sector and beyond.

Tackling digital exclusion

Our RIIO-ED2 Digitalisation Strategy continues to be built around digital inclusion. Our intention is that digitalisation does not exclude any customers, stakeholders, or employees. Rather digitalisation is a platform we can use to better serve both digital and non-digital customers. We have built our plan around the following priorities:

• Maintain and enhance our existing channels: We will be offering enhanced channels for customers, stakeholders, and employees who are digitally capable to work better and more efficiently, whilst maintaining the existing channels for those who cannot.
• Ensure that new technology supports digital and non-digital users: Our governance will ensure that any solutions we develop will not be to the detriment of non-digital users. We will endeavour to provide alternative non-digital channels wherever possible.
• Build digital platforms to better manage and engage with vulnerable customers: We intend to use digitalisation as a catalyst for better management and engagement of vulnerable customers.

Collaborating across and beyond the energy sector

Beyond the engagement with our digital stakeholders, we consider collaboration in innovation projects, industry forums and initiatives to be instrumental in achieving collective success in meeting the prevailing demands being placed on us, our peers, customers and stakeholders.

In recognising ourselves as a component within a wider system of systems, our structured approach to digitalisation provides focus and meaning for our efforts in proactively playing our part in collaborative activities. We believe that by collaborating on the principles of , we will enable others to deliver and compete in a market which boosts efficiency of infrastructure systems and services. This level of engagement is necessary across all aspects of digitalisation and, as a result, we are and will remain actively engaged in a variety of collaborative activities.

Digital governance

To deliver all aspects of our Digital Portfolio Framework, we must successfully collate disparate needs and use them to inform the development of products and services which provide value to the end user. This is a complex undertaking but something that we pride ourselves on at UK Power Networks. A fundamental aspect of making sure this happens in a sustainable, repeatable way is our approach to governance.

We have an integrated governance forum to oversee strategic delivery of digitalisation initiatives, with individual digital portfolios coordinated by specialised project forums. This seeks to better integrate digitalisation with our business-as-usual processes. A quorum of senior business leaders responsible for the areas of people, process, technology and data will attend, with participation from a broader community of business subject matter experts where required. The scope of this integrated governance approach will continue to be coordination, enablement and control of our digital portfolio, interfacing with other governance functions throughout the business as appropriate.

Our Digitalisation Portfolio Framework

The below framework provides definition to our portfolio of digital projects and initiatives, arranging them under four key pillars, underpinned by an enabling digital infrastructure of data, technology and people.

This diagram facilitates navigation to more detail in relation to each of our strategic initiatives, constituting our Digitalisation Action Plan, against which updates on progress will be provided on a regular basis.

Services and solutions that deliver choice, convenience and satisfaction for our customers across all interactions.

Tools and technologies which allow employees to work safely, efficiently and effectively, allowing them to focus on delivering for our customers.

Asset Management and Operations

Advanced capabilities for optimal network investment and operation interventions to maximise network safety, resilience and performance.

Smart Networks

Enabling our legally separated DSO through the delivery of the advanced technology capabilities to run a ‘smarter’ electricity network.

Digital Infrastructure

Delivery of the products, services and solutions within each of the four pillars depends on a number of foundational enabling capabilities. These aren’t necessarily transformational but enable the success of our ongoing digitalisation journey. It includes initiatives across Data and Information, Technology and Cyber as well as People and Process.

A data capability that enables DSO and the wider energy system

A modern, rationalised application architecture

A contemporary, resilient, secure and stable IT environment

Featured projects

STATUS: Delayed

TARGET END: 28.06.2024

Deployment of bots to manually intensive processes across our business to improve timeliness, efficiency and accuracy of manual processes through automation.

STATUS: On Track

TARGET END: 30.09.2025

Making substations smart by installing computers in them to analyse and reconfigure the network based on specific conditions to increase the resilience of the distribution network, free up capacity and allow more renewable generation to connect.

TARGET END: 30.10.2024

Explore and test the use of dynamic and locational pricing to address secondary peaks, herding behaviour, and constraints, caused by LCT uptake and conflicting market signals.

TARGET END: 31.03.2024

Exploration of potential application of contemporary cognitive and generative AI capabilities, assessing feasibility of proposed use cases, developing our understanding and competence to leverage value through controlled, low risk deployment.

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Ukraine-Russia war: Latest updates

Scroll down to catch up on all the main developments and analysis of the war in Ukraine.

Saturday 25 May 2024 15:07, UK

• Big picture: What you need to know this week

Our live coverage remains paused today, so we've rounded up the key developments you should be aware of.

• A Russian strike on the city of Kharkiv killed at least one person and injured four others, regional governor Oleh Syniehubov said;
• Russia's defence ministry claimed to have taken over the village of Arkhanhelske in the eastern Donetsk region, as well as to be advancing in the northeastern Kharkiv region;
• But Volodymyr Zelenskyy said Ukrainian forces had secured "combat control" of areas where Russian troops staged their incursion into the Kharkiv region;
• The US announced a new $275m package of weapons and equipment for Ukraine to help it repel Russia's assault near Kharkiv;
• American treasury secretary Janet Yellen said a loan for Ukraine backed by the income from frozen Russian sovereign assets is the "main option" for G7 leaders to consider when they meet next month.

While we are not running our usual updates, here is a rundown of the main events:

Vladimir Putin is ready to halt the war in Ukraine with a ceasefire that recognises current battlefield lines, four Russian sources have told the Reuters news agency.

Three of those sources claimed the Russian leader had expressed frustration about what he views as Western-backed attempts to hinder ceasefire negotiations.

"Putin can fight for as long as it takes, but Putin is also ready for a ceasefire - to freeze the war," a senior Russian source who has reportedly worked with Mr Putin and has knowledge of top-level conversations in the Kremlin, told Reuters.

Read more here...

Zelenskyy visits Kharkiv

Volodymyr Zelenskyy has travelled to the northeastern Ukrainian city of Kharkiv, which has been facing intensive Russian air attacks. 

The Ukrainian president met senior military leaders and travelled to the site of a major printing house - a day after it was destroyed in a Russian missile attack that killed at least seven people. 

Further developments :

• Russian forces have had partial success near the village of Ivanivka in the east of Kharkiv region, the Ukrainian military said. Ukraine's general staff said 10 battles took place, with one successfully repelled and more ongoing near the villages of Petropavlivka, Ivanivka, Stelmakhivka, Nevske and Druzhelyubivka;
• Volodymyr Zelenskyy will travel to Spain on Sunday, Spanish radio station Cadena SER reported. The Ukrainian president postponed visits to Madrid and Lisbon earlier this month because of intense fighting in Kharkiv;
• Vladimir Putin is planning to visit North Korea, Russian state news agency RIA said.

Our live coverage will remain paused today, but let's catch you up on where things stand and on any updates overnight.

• Russia said 35 rockets and three drones were fired into Belgorod and overnight, claiming to have destroyed all of them;
• Blasts were heard in Kherson as Russia shelled the city, said its regional governor Roman Mrochko;
• The leader of Russia's Chechnya region, Ramzan Kadyrov, met  Vladimir Putin and offered to send more fighters to the frontline;
• Volodymyr Zelenskyy issued a fresh plea for upgraded defence systems to protect Ukraine's cities against guided bombs, which he described as the "the main instrument" now used by Moscow';
• A Russian airstrike on Ukraine's northeastern city of Kharkiv yesterday destroyed a cafe, damaged a nearby residential building and set a petrol station ablaze, with local officials saying ten people were wounded.

As we've not been providing rolling coverage of the war in Ukraine today, here is a quick update on what's been happening since this morning. 

One of the most significant new stories is the UK accusing China of providing or preparing to provide lethal aid to Russia for use in the war against Ukraine. 

Defence Secretary Grant Shapps told a news conference this morning that US and British defence intelligence had evidence "lethal aid is now, or will be, flowing from China to Russia and into Ukraine".

He called this a "significant development".

We also heard from the Kremlin this morning, which said "in-depth dialogue" was needed to reduce rising tensions between Russia and the West - particularly with regards to nuclear issues. 

Kremlin spokesperson Dmitry Peskov accused the "collective West" of refusing to engage with Russia despite the potential dangers. 

Here are more of the top stories: 

• Russian forces have taken over the village of Klishchiivka in Ukraine's eastern Donetsk region, close to the city of Bakhmut, according to Russian news agencies 
• At least nine people have been injured in a Russian air attack on the Ukrainian city of Kharkiv
• Russia accused Ukraine of using a drone to attack a non-nuclear facility at the Zaporizhzhia nuclear plant, causing no critical damage
• Moscow said it is bolstering its efforts to protect its energy infrastructure from drone attacks
• Six children were handed over to Ukraine by Russia and reunited with their families, after a deal was brokered by Qatar. 

We're pausing our coverage of the Ukraine war for the moment.

Scroll through the blog below to catch up on today's developments.

Vladimir Putin has praised the late president of Iran, Ebrahim Raisi, and said he was a "reliable partner".

Raisi was killed in a helicopter crash near the Azerbaijan border over the weekend along with his foreign minister and seven others.

Speaking on the leader, Mr Putin said he was "a man of his word" who carried out any agreements the pair made.

"He was truly a reliable partner, a man sure of himself, who acted in the national interest," Russian news agencies quoted Mr Putin as telling Vyacheslav Volodin, chairman of Russia's lower house of parliament.

"He was, of course, a man of his word and it was always good to work with him. What I mean is if we came to an agreement on something, you could be sure the agreement was carried out."

The Kremlin leader asked Mr Volodin, who will be attending memorial events in Iran, to pass on "words of our sincere condolences in connection with this tragedy".

Since the start of the war in Ukraine, Russia has strengthened political, trade and military ties with Iran in a deepening relationship that the US and Israel view with concern.

Heavy fighting in the Pokrovsk area in eastern Ukraine has forced Ukrainian troops to engage in "manoeuvres," the Ukrainian military's general staff have said.

Their report said Pokrovsk, northwest of the Russian-held city of Donetsk, remains the front's "hottest" sector.

"In some areas, the situation requires our troops to engage in manoeuvres," the general staff report reads.

Volodymyr Zelenskyy has referred to the region and adjacent areas as "extraordinarily difficult" in his nightly video address.

Volodymyr Zelenskyy has said allies are taking too long when it comes to decisions on military support for Ukraine.

In an interview with Reuters, the Ukrainian leader said every decision which everyone came to was "late by around one year".

"But it is what it is: one big step forward, but before that two steps back. So we need to change the paradigm a little bit," he said.

"When we're quick, they fall behind. And then there's a gap - six, eight months of unpassed (aid) packages, and then two-three months of supplies - and a year goes by. We would like not to lose the advantage."

Mr Zelenskyy also said Ukraine had never used Western weapons on Russian territory.

A senior Russian diplomat has said that the EU plan to channel profits from frozen Russian assets to Ukraine would have "unpredictable" consequences, according to the TASS news agency.

According to TASS, Kirill Logvinov, Russia's acting permanent representative to the EU in Brussels, told Russia journalists: "The only predictable thing is that those in the EU will be obliged sooner or later to return to our country what has been stolen."

For context : In March the European Commission proposed transferring to Ukraine profits generated by Russian central bank assets frozen in Europe.

The plan would see 90% channeled through the European Peace Facility fund to buy weapons for Ukraine. 

The rest would be used for recovery and reconstruction.

Russia's defence ministry has said it has begun a round of drills involving tactical nuclear weapons. 

The exercises were announced by Russian authorities this month in response to remarks by senior Western officials about the possibility of deeper involvement in the war in Ukraine.

It was the first time Russia has publicly announced drills involving tactical nuclear weapons, although its strategic nuclear forces regularly hold exercises.

According to the ministry's statement, the first stage of the new drills include nuclear-capable Kinzhal and Iskander missiles.

The maneuvers are taking place in the southern military district, which consists of Russian regions in the south.

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