Return on regulatory equity: Electricity distribution (RIIO-ED1)


Source: RIIO electricity distribution annual report 2015-16.

Information correct as of: February 2017

This chart is an indicator of financial performance. It shows our estimates of electricity distribution network operators’ return on regulatory equity (RoRE). It is our current view of an eight-year average RoRE over RIIO-ED1.

We update this chart on an annual basis. Click the ‘more information’ tab above for a summary of the latest trends, details of how to interpret the figures and for information on methodology.

Policy Areas:

  • Electricity - distribution

Data Table

Return on regulatory equity: Electricity distribution (RIIO-ED1)

Distribution network operatorsCurrent eight-year view
Electricity North West9.22%
Northern Powergrid8.06%
Western Power Distribution8.10%
UK Power Networks11.50%
SP Energy Networks7.26%
Scottish & Southern Electricity Networks 9.42%

More information

Return on regulatory equity (RoRE): At-a-glance summary

  • RoRE across the sector is 9.03%,
  • It ranges from 11.50% for UK Power Networks to 7.26% for Scottish Power Energy Networks.

Relevance and further information

  • RoRE helps us monitor the financial performance of distribution network operators under the price control.
  • RoRE should be compared to the cost of equity allowed at the start of the price control. The Western Power Distribution group was allowed 6.4% and the remaining five groups 6.0%.
  • No distribution network operators are forecast to earn returns below their cost of equity.


  • Our RoRE calculation is based on a mix of first year performance, company forecasts and simple averages.
  • There are a number of factors not reflected in our RoRE calculations which may impact the return realised by shareholders. The largest being potential clawbacks for non-delivery of outputs.
  • Our calculation assumes all outputs will be delivered.
  • Returns may not equal the actual returns seen by shareholders.
Date correct
February 2017
Policy area