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: 30th Aug 2016
  • News and blogs
  • 0 Associated documents
The Energy Networks Association is hosting the Distribution Network Operators’ consultation on modifications to their Common Methodology.

  • Published: 23rd Aug 2016
  • Decisions
  • 1 Associated documents
This direction modifies the ED1 Price Control Financial Model in preparation for running the Annual Iteration Process in November 2016.

  • Published: 29th Jul 2016
  • Decisions
  • 5 Associated documents
This decision sets out changes to the RIIO-ED1 Price Control Financial Handbook to incorporate new methodologies for closing out DPCR5.

  • Published: 28th Jul 2016
  • Decisions
  • 1 Associated documents
Decision for our consultation on the Losses Discretionary Reward for tranche one.

  • Published: 19th Jul 2016
  • Decisions
  • 2 Associated documents
This notice proposes modifications to the ED1 Price Control Financial Model in preparation for running the Annual Iteration Process in November 2016.

  • Published: 20th Jun 2016
  • Decisions
  • 1 Associated documents
We are publishing our decision on our proposed approach for the DPCR5 close out methodologies.

  • Published: 20th Jun 2016
  • Closed: 18th Jul 2016
  • Consultations & responses
  • 12 Associated documents
We are consulting on changes to the RIIOED1 Price Control Financial Handbook to incorporate new methodologies for closing out DPCR5.

  • Published: 17th May 2016
  • Reports & plans
  • 2 Associated documents
This report summarises the findings from the second wave of our 2015 Consumer First Panel.

  • Published: 16th May 2016
  • Decisions
  • 1 Associated documents
This letter sets out our decision to agree to SHEPD’s request to defer the application window for Subsea Cables Costs uncertainty mechanism.

  • Published: 6th May 2016
  • Closed: 6th Jun 2016
  • Consultations & responses
  • 11 Associated documents
We would welcome views on the six submissions and the corresponding Question and Answer logs.

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