RIIO-ED1 network price control

The RIIO-ED1 price control set the outputs that the 14 electricity Distribution Network Operators (DNOs) need to deliver for their consumers and the associated revenues they are allowed to collect for the eight-year period from 1 April 2015 to 31 March 2023.

RIIO-ED1 is the first electricity distribution price control to reflect the new RIIO (Revenue = Incentives + Innovation + Outputs) model for network regulation. RIIO is designed to drive real benefits for consumers. It provides the companies with strong incentives to step up and meet the challenges of delivering a low carbon, sustainable energy sector at value for money for existing and future consumers.
 
In February 2014 we published our decision to settle Western Power Distribution's price control early (termed 'fast-tracking'). We issued WPD’s licence conditions for RIIO-ED1 in May 2014.

In November 2014 we published our final settlements (final determinations) for the 10 companies remaining in the process. We issued their licence conditions implementing these determinations in February 2015.

Elements of the RIIO-ED1 price control were appealed to the Competition and Markets Authority (CMA) by a supplier, British Gas (BG) and a DNO, Northern Powergrid (NPg). The CMA published its decisions in September 2015. It upheld part of one of BG’s five grounds, and one of NPg’s three grounds. The decision on BG’s appeal applies to the 10 slow-track DNOs. NPg’s decision only applies to its two licensees. We have amended the licences according to the CMA’s orders, which we have published for reference below. The latest version of the licences can be accessed from the electronic public register.

Publications and updates

  • Published: 30th Nov 2018
  • Decisions
  • 14 Associated documents
Directions issued in respect of the Annual Iteration Process which took place by 30 November 2018 for the RIIO-ED1 Price Control Financial Model.

  • Published: 23rd Nov 2018
  • Closed: 4th Jan 2019
  • Consultations and responses
  • 9 Associated documents
This letter seeks views on whether licensees should be able to stop the clock, and if they should what are the circumstances in which it may be permissible for a licensee to stop the clock.

  • Published: 5th Nov 2018
  • Closed: 3rd Dec 2018
  • Consultations and responses
  • 14 Associated documents
This consultation sets out proposed changes to the Stakeholder Engagement Incentive Guidance and Stakeholder Engagement and Consumer Vulnerability Incentive Guidance.

  • Published: 11th Sep 2018
  • Decisions
  • 1 Associated documents
Decision on the second tranche of the RIIO-ED1 Losses Discretionary Reward

  • Published: 30th Aug 2018
  • Decisions
  • 1 Associated documents
This direction sets out the modifications to the ED1 Price Control Financial Model with respect to the voluntary return by WPD of amount £77m in unused allowanc

  • Published: 2nd Aug 2018
  • Open letters and correspondence
  • 1 Associated documents
We are taking an alternative approach to how network companies report their financial performance under the RIIO framework.

  • Published: 27th Jul 2018
  • Open letters and correspondence
  • 3 Associated documents
Proposed modification required to the ED1 PCFM to implement Western Power Distribution’s voluntary return of £77m in unspent Rail Electrification allowances.

  • Published: 19th Jul 2018
  • Decisions
  • 1 Associated documents
Changes to Western Power Distribution’s licences and corresponding Price Control Financial Handbook.

  • Published: 1st Jun 2018
  • Closed: 29th Jun 2018
  • Consultations and responses
  • 4 Associated documents
Proposed changes to WPD’s licences and corresponding Price Control Financial Handbook for the recovery of diversions costs associated with rail electrification.

  • Published: 7th May 2018
  • Guidance
  • 0 Associated documents
Governance and guidance documents for electricity distribution network operators (DNOs) and the schemes in place in the current RIIO-ED1 price control.

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