RIIO-2 Re-opener Applications 2025: licence modifications

Details of outcome 

We consulted on our on proposed modifications to the electricity distribution and electricity transmission licences to give effect to our 2025 RIIO-2 Re-opener Final Determinations between 2 February 2026 and 3 March 2026. We have published three notices of statutory consultations covering ET MSIP, ET Gremista, and ED licence modifications respectively.

We received three responses from electricity transmission operators (ETOs) for the ET MSIP, one response from ETO for ET Gremista and six responses from electricity distribution network operators for ED licence modification.

We are now publishing our decisions on ED licence modifications to the electricity distribution licence. We will publish further licence modifications to incorporate the allowances of ET MSIP and ET Gremista into the ET3 licence at a later date.

Included in these modifications are the following statutory licence modifications:

• modification of Special Condition 1.2 and Special Condition 3.2 of electricity distribution licences 

Read the full outcome

Original consultation

Consultation description

This statutory consultation sets out the proposed changes to the special licence conditions of the relevant Electricity Distribution and Electricity Transmission licences. The purpose of these modifications are to give effect to the decisions set out in our RIIO-2 Re-opener Applications 2025 Final Determinations published on 12 December 2025.

We have published three statutory modification notices for consultation on:

• funding for Scottish Hydro Electric Transmission’s (SHET) Gremista Grid Supply Point Project,
• funding for the electricity transmission companies Medium Sized Investment Projects (MSIP), and
• funding for electricity distribution companies under the Load Related Expenditure Re-opener and the Hebrides and Orkney Re-opener, and the introduction of Price Control Deliverables (PCDs) for re-opener mechanisms

We have also published a direction to award pre-construction funding for SHET’s Gremista project and to set the applicable Cost and Output Adjusting Event (COAE) threshold percentage.

Who should respond 

We would like views from network companies and people with an interest in electricity transmission and distribution networks.