Proposed Innovative Delivery Incentive Guidance Document (RIIO-ET3)

Details of outcome 

We have decided to introduce the Innovative Delivery Incentive Guidance Document that licensed electricity transmission owners (the licensees) must comply with when making submissions under the Innovative Delivery financial output delivery incentive (ODI-F) in RIIO-ET3.   

The Innovative Delivery ODI-F is a panel-based, reward-only incentive in the electricity transmission price control aimed at incentivising licensees to adopt innovative approaches to network investments that accelerates delivery and provides value to consumers.    

The Innovative Delivery Incentive Guidance Document details:

• the eligibility criteria that licensees’ submissions must meet, including the information and evidence they must provide;  
• the process by which Ofgem will appoint a panel to assess licensees’ submissions;  
• the role and requirements of the panel when assessing licensees’ submissions and making its recommendations to Ofgem;  
• the criteria that the panel will use to assess a licensee’s submissions; and  
• the methodology that Ofgem will use to determine the value of any reward under the licence.  

Read the the updated Innovative Delivery Incentive Guidance Document.

Read the full outcome 

Original consultation

Consultation description 

We are consulting on a proposed Innovative Delivery Incentive Guidance Document that licensed electricity transmission owners (the licensees) must comply with when making submissions under the Innovative Delivery financial output delivery incentive (ODI-F).  

The Innovative Delivery ODI-F is a panel-based, reward-only incentive in the electricity transmission price control aimed at incentivising licensees to adopt innovative approaches to network investments that accelerates delivery and provides value to consumers.   

The proposed Innovative Delivery Incentive Guidance Document details

• the eligibility criteria that licensees’ submissions must meet, including the information and evidence they must provide; 
• the process by which Ofgem will appoint a panel to assess licensees’ submissions; 
• the role and requirements of the panel when assessing licensees’ submissions and making its recommendations to Ofgem; 
• the criteria that the panel will use to assess a licensees submissions; and 
• the methodology that Ofgem will use to determine the value of any reward under the licence. 

Who should respond 

• Electricity transmission owners 
• Consumer groups 
• Energy innovation community 
• Any stakeholders with an interest in the electricity transmission price control.