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RIIO-2 Network Innovation Allowance (NIA) governance

Publication type:
Guidance
Publication date:
Topic:
Energy network price controls, Electricity distribution
Subtopic:
Network Innovation Allowance (NIA)

Arrangements for the governance and administration of the RIIO-2 Network Innovation Allowance (NIA).

Details

The RIIO-2 NIA governance document version 4 applies to electricity distribution licensees until the start of RIIO-ED3 on 1 April 2028. Gas transporter and electricity transmission licensees' projects and NESO's projects funded under RIIO-3 NIA allowances will be subject to the RIIO-3 NIA governance document.  

Gas transporter and electricity transmission licensees' and NESO's projects funded under RIIO-2 NIA can continue in the RIIO-3 price control period under the Carry-over Network Innovation Allowance (CNIA), which will cease to be effective on 30 September 2027. 

The CNIA will be set out in the gas transporter and electricity transmission licensees' RIIO-3 licence conditions. For NESO, the CNIA will be set out in Condition F2 of NESO’s ESO Licence. For the purposes of the CNIA, this document serves as the RIIO-2 NIA governance document.