NARM handbook updates: threshold for justifying Clearly Identifiable Over or Under Delivery and related amendments
Decision
- Publication date
- Industry sector
- Distribution Network
- Transmission Network
This publication sets out our decision to proceed with amendments to the Network Asset Risk Metric (NARM) Handbook, following the statutory consultation published on 3 April 2025.
We consulted from 3 April to 9 May 2025 on a set of proposed changes aimed at supporting the effective operation of the NARM mechanism. These included updates to the upper and lower threshold values for the Unit Cost of Risk (UCR), which are used to determine whether a delivery qualifies as a Clearly Identifiable Over or Under Delivery under the NARM Funding Adjustment and Penalty Mechanism.
The changes are designed to ensure that companies remain accountable for delivering their Baseline Network Risk Outputs (BNRO), while reducing the risk of outcomes that are not cost-reflective.
All non-confidential consultation responses have been published on the consultation page: Network Asset Risk Metric handbook: clearly identifiable threshold statutory consultation.