Consultation on additional Networks Innovation Allowance funding

Details of outcome

In August 2025 we decided to proceed with a detailed assessment before providing additional funding through Network Innovation Allowance (NIA) to Distribution Network Operators (DNOs) for the final two years of RIIO-ED2. Responses to our March consultation did not provide the evidence needed to support our minded-to-position. Read RIIO-ED2 Network Innovation Allowance (NIA): funding decision for years 2026 to 27 and 2027 to 28, 18 August 2025. 

Instead, a detailed assessment was needed to determine which DNOs required further funding, and how much. We decided in October how much additional NIA funding DNOs would receive for the final two years of RIIO-ED2. This decision was based on this detailed assessment of companies’ justifications for receiving further allowance.  

Read the full outcome

Original consultation

Consultation description

We are consulting on our proposal to provide additional funding through the Networks Innovation Allowance (NIA) to Distribution Network Operators (DNOs) for the final 2 years of RIIO-ED2. 

We initially provided NIA funding for the first 3 years of RIIO-ED2. We are proposing providing the same amount of funding on a per year basis for the final 2 years of RIIO-ED2, ensuring a consistent treatment and ensuring various innovation projects can go ahead throughout the entire price control.

Consultation documents