Proposal to modify the RIIO-2 Electricity Distribution Price Control Financial Instruments

Details of outcome

We have taken the decision to update the RIIO-2 Electricity Distribution Price Control Financial Instruments.  

This decision follows our statutory consultation on these proposed changes that commenced on 11 May 2026 and closed on 9 June 2026.  

Read the full outcome 

Consultation description

We are consulting on proposed modifications to the:

• RIIO-ED2 Price Control Financial Model (PCFM)
• RIIO-ED2 Price Control Financial Handbook (PCFH)

The modifications to the RIIO ED2 Price Control Financial Instruments we are proposing are:

• the addition of a new pass‑through term to the ED2 PCFM to enable recovery of costs associated with connections reform
• the addition of a new paragraph to Chapter 7 (Pensions) of the ED2 PCFH setting out the procedure to be followed where the pensions model calculations indicate an expected surplus

These proposed modifications address issues raised through the ED2 Price Control Financial Model Working Group.

Who should respond

We invite responses from electricity distribution network operators and any other interested stakeholders.