Changes to RIIO-ED2 Load Related Expenditure volume drivers: statutory consultation

Details of outcome

We received 5 responses from DNOs.  The responses were supportive of our proposals for upward revision to the Low Voltage Services Volume Driver (LVSVD) unit rates; a higher LVSVD ex-ante allowance for all distribution network operators (DNOs) and an upward revision to the Secondary Reinforcement Volume Driver (SRVD) cap for one DNO. We are implementing these proposals. The principal issues in the responses related to implementation timing, licence drafting, reporting treatment and future use of SRVD metrics. We have made targeted drafting clarifications where appropriate. 

Read the full response

Original consultation

Consultation description

We published our decision on a review of the RIIO-ED2 Load Related Expenditure (LRE) volume drivers on 11 June 2026. In that decision, we confirmed our intent to modify Special Condition (SpC) 3.9 of the electricity distribution licence. We are now consulting on proposed modifications to the electricity distribution licence. The effect of the proposed modifications will be as follows:

• an upward revision to the Low Voltage Services Volume Driver (LVSVD) unit rates
• a higher LVSVD ex-ante allowance for all distribution network operators (DNOs)
• an upward revision to the Secondary Reinforcement Volume Driver (SRVD) cap for one DNO

Who should respond

The consultation will be of interest in particular to distribution network operators.

How to respond

You can submit your response by Thursday 9 July 2026 by emailing RIIOED2@ofgem.gov.uk.