Current network price controls (RIIO-1)
There are three price controls under RIIO-1 (Revenue=Incentives+Innovation+Outputs), covering four sectors. RIIO-T1 is the price control for gas transmission and electricity transmission. RIIO-GD1 is the price control for gas distribution. RIIO-ED1 is the price control for electricity distribution. Each of the current price controls are set to run for an eight-year period.
RIIO-T1 is the price control for the high voltage electricity transmission networks and high pressure gas transmission networks which transmit energy across Britain from where it is generated. The price control runs for eight years, from 2013-2021.
RIIO-ED1 is the price control for the electricity distribution network, where network companies take power from the transmission network and deliver it at safe, lower voltages to homes and businesses. The price control runs for eight years, from 2015-2023.
RIIO-ED1 is the price control for the gas distribution network, where network companies take gas from the transmission network and deliver it at safe, lower pressures to homes and businesses. The price control runs for eight years, from 2013-2021.
To ensure network companies continue to deliver outputs consumers will benefit from, we included various types of uncertainty mechanisms in the current RIIO price control model, including a review of outputs half way through the price control.
The incremental changes to base revenue (MOD) during the RIIO price control period are derived from a price control financial model. The model does this by recalculating base revenues based on a limited number of updated variables.
Through network innovation competitions and the Low Carbon Networks Fund, we provide essential backing to innovative projects which aim to help make the energy networks smarter, accelerate a low carbon energy sector and deliver financial benefits to consumers.
Each year, transmission and distribution network owners must report to us on their performance against the RIIO price control. We publish annual reports and interactive charts and data on their performance as part of our market monitoring.
We regularly engage with stakeholders to help identify and consider issues affecting the gas and electricity networks. Here you can view information on our ongoing work with network companies and wider stakeholders for RIIO-1.
RPI-X@20 was a detailed review of energy network regulation. It resulted in the current RIIO price control framework. Here you can view publications related to the review.