Network price controls

The regional Gas Distribution Networks (GDNs) are natural monopolies. As the industry regulator, we administer a price control regime that ensures GDNs can, through efficient operation, earn a fair return on their activities while controlling the end cost to consumers.

In a price control we set the revenues the GDN is allowed to earn from consumers, as well as the outputs they have to deliver in return. We also set incentives to encourage the delivery of these outputs.

The current price control (referred to as RIIO-GD1) runs from 1 April 2013 to 31 March 2021.

RIIO-GD1 uses the  RIIO model (Revenue =  Incentives + Innovation + Outputs) – our new model for network price controls. RIIO places particular emphasis on incentives to drive the innovation needed to deliver a sustainable energy network at value for money to existing and future consumers.

The previous price control (referred to as GDPCR) ended on 31 March 2013.

Publications and updates

  • Published: 4th Mar 2013
  • Factsheets
  • 1 Associated documents
Ofgem, as the regulator, sets price controls for the companies that operate Britain’s gas and electricity networks. This factsheet explains why price controls are needed, how they work and what they mean for the domestic consumer.