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


Source: RIIO electricity distribution annual report 2017-18.

Information correct as of: March 2019

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 OperatorsCurrent eight year view

More information

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

  • RoRE across the sector is 9.1%,
  • It ranges from 6.5% for Electricity North West Ltd to 11.6% for UK Power 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 measures companies’ performance for the RIIO-ED1 period, this includes the first three years actual return and their forecast performance for the remaining five years of RIIO-ED1.
  • We report RoRE values for the companies compared against the assumptions we set for RIIO-ED1. Our RoRE now includes their actual and forecast financing (cost of debt) and tax performance. This is a new way of reporting RoRE, and values may not be comparable with the values we have published in the past.
  • Our calculation assumes all outputs will be delivered.
Date correct
March 2019
Policy area