RIIO-ED1 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: 27th Apr 2016
  • Decisions
  • 1 Associated documents
Direction confirms net revenue from distribution network voltage control services for system operator residual balancing activity are to be included in the ‘Valued Added Services’ category of Directly Remunerated Services.

  • Published: 22nd Apr 2016
  • Decisions
  • 1 Associated documents
This direction corrects minor formula errors for the fast-track licences in the ED1 Price Control Financial Model.

  • Published: 12th Apr 2016
  • Closing: 10th May 2016
  • Consultations & responses
  • 2 Associated documents
This letter sets out our proposed decision to agree to SHEPD’s request to defer the application window for Subsea Cables Costs uncertainty mechanism.

  • Published: 7th Apr 2016
  • Guidance
  • 0 Associated documents
We are giving links to governance and guidance documents for the reporting of information by electricity distribution network operators (DNOs) and for the schemes in place in the current price control RIIO-ED1.

  • Published: 31st Mar 2016
  • Decisions
  • 1 Associated documents
This letter presents our decision on the project’s updated timeline and updates stakeholders on the ongoing work to develop RIIO accounts, intended to be in time for network companies to publish these for 2016-17 in September 2017.

  • Published: 31st Mar 2016
  • Decisions
  • 3 Associated documents
This Direction sets out the modifications we are making to the ED1 Price Control Financial Handbook in order to correct typographical errors in Parts 1 and 2 and amend dates in Part 3.

  • Published: 31st Mar 2016
  • Decisions
  • 3 Associated documents
This Direction sets out the modifications we are making to the ED1 Price Control Financial Handbook in order to correct typographical errors in Parts 1 and 2 and amend dates in Part 3.

  • Published: 31st Mar 2016
  • Decisions
  • 3 Associated documents
We are issuing a Business Plan Commitment Reporting Guidance under Standard Licence Condition 50 (SLC50). Our Guidance explains how DNOs should incorporate summary information on their performance during the price control in their SLC50 reports.

  • Published: 31st Mar 2016
  • Decisions
  • 9 Associated documents
This direction sets out the modifications we are making to the Electricity Distribution Regulatory Instructions and Guidance.

  • Published: 22nd Mar 2016
  • Closed: 19th Apr 2016
  • Consultations & responses
  • 3 Associated documents
This notice corrects minor formula errors for the fast-track licences in the ED1 Price Control Financial Model. For ease of use, the attached model is also a consolidated version, containing calculations for all 14 licensees.

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