Additional NIA RIIO-ED2 funding: licence modifications
- Publication type:
- Consultation
- Status:
- Open
- Publication date:
- Closing date:
- Topic:
- Electricity distribution, Innovation
- Industry sector:
- Distribution Network
We are consulting on proposed licence changes to facilitate the award of additional Network Innovation Allowance funding to Distribution Network Operators for the final two years of RIIO-ED2.
Consultation description
We launched a consultation in March 2025 regarding our proposal to provide additional funding through the Network Innovation Allowance (NIA) for the final two years of RIIO-ED2. In August we decided to carry out a detailed assessment of companies’ justifications for receiving further allowance before providing additional NIA funding to Distribution Network Operators. This assessment informed our October decision on the amounts of additional NIA funding each DNO would receive.
As amendments to Special Condition 5.2 of the Electricity Distribution Licence will be needed to facilitate these additional allowances, this statutory consultation has been launched in time for proposed modifications to take place by 31 March 2026. It will run for 32 days and will take effect 56 days after our final decision.
Who should respond
We welcome responses from:
- Distribution Network Operators
- anyone with an interest in innovation funding in the energy sector
How to respond
Submit your response by 5 January 2026 by emailing networks.innovation@ofgem.gov.uk.
Note: the amended licence special condition documents attached below are not fully accessible. If you require an alternative format, please contact networks.innovation@ofgem.gov.uk.