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 2017
  • Decisions
  • 2 Associated documents
Completion of Ofgem’s 2017 reasonableness review and revision of pension allowances.

  • Published: 30th Nov 2017
  • Decisions
  • 1 Associated documents
Decision to revise allowed expenditure for Link Box Costs for SPMW and SPN

  • Published: 30th Nov 2017
  • Decisions
  • 14 Associated documents
Directions issued in respect of the Annual Iteration Process which took place by 30 November 2017 for the RIIO-ED1 Price Control Financial Model.

  • Published: 8th Nov 2017
  • Closed: 6th Dec 2017
  • Consultations and responses
  • 24 Associated documents
Our proposed modification to the licence that will allow the introduction of reporting of RIIO Accounts by network operators.

  • Published: 24th Oct 2017
  • Closed: 21st Nov 2017
  • Consultations and responses
  • 5 Associated documents
Consultation on our minded-to position to revise allowed expenditure for Link Box Costs for SPMW and SPN.

  • Published: 13th Oct 2017
  • Closed: 27th Oct 2017
  • Consultations and responses
  • 10 Associated documents
Notice of our provisional revised pension allowance values and 2017 reasonableness review of RIIO network operators’ pension deficits.

  • Published: 8th Sep 2017
  • Decisions
  • 3 Associated documents
This direction sets out the modifications we are making to the Losses Discretionary Reward Guidance Document.

  • Published: 19th Jul 2017
  • Closed: 30th Aug 2017
  • Consultations and responses
  • 10 Associated documents
This letter sets out our timetable and next steps for the RIIO-ED1 Mid Period Review (MPR).

  • Published: 14th Jul 2017
  • Closed: 14th Aug 2017
  • Consultations and responses
  • 4 Associated documents
We are consulting on proposed changes to the Losses Discretionary Reward (LDR) guidance document.

  • Published: 26th Jun 2017
  • Closed: 24th Jul 2017
  • Consultations and responses
  • 12 Associated documents
In our recent Decision on our policy for funding Pension Scheme Established Deficits we said we would modify the Pension Regulatory Instructions and Guidance.