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: 24th Feb 2017
  • Reports & plans
  • 3 Associated documents
Report showing the performance of the electricity distribution companies in 2015-16, the first year of the current RIIO-ED1 price control.

  • Published: 17th Feb 2017
  • Guidance
  • 2 Associated documents
Further guidance to Electricity Distribution licensees intending to make submissions to the Innovation Roll-out Mechanism under the RIIO-ED1 price control.

  • Published: 6th Feb 2017
  • News and blogs
  • 0 Associated documents
The Energy Networks Association is hosting the Distribution Network Operators’ consultation on modifications to their Common Methodology.

  • Published: 18th Jan 2017
  • Reports & plans
  • 1 Associated documents
Maxine Frerk’s paper explains the ways consumer engagement was incorporated into the RIIO-ED1 price control process. It considers and evaluates the overall effect and reaches conclusions that will inform future choices.

  • Published: 18th Jan 2017
  • Reports & plans
  • 1 Associated documents
In the RIIO-ED1 review we set the basis for revenues that companies who run the distribution (lower voltage) networks can earn between April 2015 and March 2023. This guide is a summary of policies, decisions and legislation.

  • Published: 19th Dec 2016
  • Decisions
  • 1 Associated documents
Decision to approve the Information Gathering Plans submitted by the distribution network operators (DNOs).

  • Published: 19th Dec 2016
  • Agendas, minutes and presentations
  • 5 Associated documents
Access minutes of the Reliability Working Group (RWG) meetings. This is the forum for Ofgem, the DNOs and other stakeholders to discuss development of reliability outputs for the RIIO-ED1 price control.

  • Published: 30th Nov 2016
  • Decisions
  • 14 Associated documents
Directions issued in respect of the Annual Iteration Process which took place by 30 November 2016 for the RIIO-ED1 Price Control Financial Model.

  • Published: 24th Oct 2016
  • Closed: 21st Nov 2016
  • Consultations & responses
  • 15 Associated documents
We have extended the deadline for responses to 21 November on our view to approve Information Gathering Plans submitted by electricity distribution network operators.

  • Published: 21st Oct 2016
  • Decisions
  • 3 Associated documents
Decision to approve the proposed modifications to the distribution network operators (DNO) Common Network Asset Indices Methodology.

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