RIIO-ED2 Sector Specific Methodology Decision


Publication date

Industry sector

Distribution Network

We set price controls on the companies that run the gas and electricity networks in Great Britain to ensure that current 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 July 2020, we consulted on proposals to set the sector specific methodology for the next RIIO price control for electricity distribution (RIIO-ED2) that will start on 1 April 2023. The consultation period closed on 1 October 2020. Having taken account of all consultation responses we are now setting out our decisions on the methodology that we will use to set RIIO-ED2. A separate annex will be published in 2021 Q1 confirming our Finance Decisions.

The Electricity Distribution Network Operators (DNOs) will use this information to develop and submit their RIIO-ED2 Business Plans during 2021.

Update 11 March 2021: Today we have published the Sector Specific Methodology Decision relating to the Finance Annex.