Network regulation – the RIIO model

RIIO is Ofgem’s framework for setting price controls for network companies. Over the next decade these companies face an unprecedented challenge of securing significant investment to maintain a reliable and secure network, and dealing with the changes in demand and generation that will occur in a low carbon future.

As the regulator, we must ensure that this is delivered at a fair price for consumers. To help achieve this, we developed RIIO (Revenue=Incentives+ Innovation+Outputs),  a new performance based model for setting the network companies’ price controls which will last eight years.

RIIO is designed to encourage network companies to:

  • Put stakeholders at the heart of their decision-making process
  • Invest efficiently to ensure continued safe and reliable services
  • Innovate to reduce network costs for current and future consumers
  • Play a full role in delivering a low carbon economy and wider environmental objectives.

In early 2013 we completed the first price control reviews to use the RIIO framework: RIIO-T1 (gas and electricity transmission) and RIIO-GD1 (gas distribution). We have now published our final determinations for the RIIO-ED1 price control review for electricity distribution.

The RIIO framework was developed through the RPI-X@20 project.

Publications and updates

  • Published: 3rd Feb 2015
  • Decisions
  • 19 Associated documents
Decision on new Data Assurance Guidance (DAG) for electricity transmission, gas transmission, and gas distribution companies.

  • Published: 17th Dec 2014
  • Closed: 21st Jan 2015
  • Consultations & responses
  • 17 Associated documents
Statutory consultation on new Data Assurance Guidance (DAG) for electricity transmission, gas transmission, and gas distribution companies.

  • Published: 30th Jul 2014
  • Closed: 26th Sep 2014
  • Consultations & responses
  • 32 Associated documents
This document explains our proposed settlements (draft determinations) for the next network price control, RIIO-ED1. It applies to five of the six electricity distribution companies that run Britain’s local electricity network, which transports energy...