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

Publication type:
Consultation
Publication date:
Closing date:
08 June 2026
Status:
Open
Topic:
Electricity distribution,
Energy network price controls
Subtopic:
RIIO-ED2: electricity distribution price control 2023 to 2028

We are consulting on some minor modifications to the ED2 Price Control Financial Model (PCFM) and the ED2 Price Control Financial Handbook (PCFH).

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.

How to respond

Submit your response by 8 June 2026 by emailing david.simpson@ofgem.gov.uk