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: 24th Apr 2015
  • Closing: 22nd May 2015
  • Consultations & responses
  • 4 Associated documents
This notice contains the proposed new regulatory instructions and guidance (RIGs) for the electricity distribution networks (DNOs). Please let us know, within 28 days, if you have any comments on the proposal.

  • Published: 3rd Feb 2015
  • Decisions
  • 20 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...