RIIO-2 will be the next price controls for the network companies running the gas and electricity transmission and distribution networks.
RIIO (Revenue=Incentives+Innovation+Outputs) 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.
When will the current price controls end?
Each of the current price controls are set to run for an eight-year period. The current price controls for gas and electricity transmission (RIIO-T1) and gas distribution (RIIO-GD1) networks will end on 31 March 2021. And the electricity distribution price control (RIIO-ED1) will end on 31 March 2023. Once they end we will need to put new controls in place: RIIO-2.
In setting the next price controls, we want to learn from our experience to date and ensure that networks can deliver the network services that consumers will require in the future.
What will happen when?
This timeline is indicative and milestones may change as RIIO-2 plans evolve:
- On 7 March 2018 we launched our consultation on the 'RIIO-2 Framework Review'. This stage marks the beginning of the consultation process for setting the next price controls. It encompasses a review of the overall RIIO framework so far and will also assess if we need to make any changes. Our open letter from July 2017 sets out the milestones during the review.
- In the summer of 2018 we will finalise the framework to set the next price controls.
- In the summer to autumn of 2019, network companies will be asked to submit their business plans.
- By the end of 2020, we will publish our final view on the price control allowances.