Decision to modify the PCFIs and licence conditions for gas and electricity transmission and distribution
Decision
- Publication date
- Industry sector
- Transmission Network
- Distribution Network
On 25 April 2025, the Authority published a statutory consultation proposing to modify the Price Control Financial Models (PCFMs), Price Control Financial Handbooks (PCFHs), Standard and Special Conditions for RIIO-GD2, RIIO-GT2, RIIO-ED2 and RIIO-ET2. The Price Control Financial Handbooks (PCFHs) are tracked to show the location of modifications relative to previously published versions.
The Authority hereby directs the modifications to the Standard Conditions, Special Conditions, PCFMs and PCFHs in the manner indicated in the versions published on this page.
The modifications include the following:
- New ET2 Special Licence conditions terms regarding Transitional Centralised Strategic Network Plan 2 (tCSNP2):
- Addition of Special Condition 3.44 Development Funding Price Control Deliverable and Use It Or Lose It Adjustment (DFt) in the ET licences;
- Addition of Special Condition 3.45 Delivery Track Pre-Construction Funding, Re-opener, Price Control Deliverable and Use It Or Lose It Adjustment (DTPCFt) in the ET licences; and
- Modification to Special Condition 1.1 Interpretation and definitions.
- Modification to the non-variant allowances in the GD2 PCFM;
- Modification to Special Condition 5.4 Vulnerability and carbon monoxide allowance (VCMt) in the GD licences;
- Addition of Special Condition: SpC 3.19 FSO transition allowance in the GT licence;
- Modification of Electricity Distribution Special Condition 9.8 Tax Reconciliation Assurance Statement;
- Modification of Electricity Distribution Special Condition 1.2 Definitions and references to the Electricity Distributors; and
- Modification of Electricity Standard Conditions 29 Restriction of activity and financial ring-fencing of the Distribution Business.