RIIO-ED2 Framework Decision


We set price controls on the companies that run the gas and electricity networks in Great Britain to ensure that existing and future consumers get the network services they require at a fair price.  We do so through the RIIO model, where we set network company Revenues using Incentives to deliver Innovation and Outputs.

In August, we consulted on the framework we will use for the next round of price controls via an Open Letter. We have now considered the responses that we received. This is our decision on those elements of the framework that we need to settle now.

We will now develop the methodology for applying the framework for the electricity distribution networks. We will publish a consultation on the Sector Specific methodologies in summer 2020, where we will provide further detail on our approach.

This document was amended in January 2020 to correct a reference in paragraph 1.16 to the Engineering Standards Review.