In March 2008, we launched a comprehensive review of the RPI-X framework we used to regulate gas and electricity networks. This review was known as the RPI-X@20 review.
Our recommendation from this review was the need to use a new regulatory framework built on elements of the previous approach but with important new elements. It is known as the RIIO model .
RIIO stands for:
- Revenue = Incentives+Innovation+Outputs
It builds on the success of the previous RPI-X regime, but better meets the investment and innovation challenge. It does this by placing much more emphasis on incentives to drive the innovation needed to deliver a sustainable energy network that offers value for money to existing and future consumers. The RIIO framework is designed to promote smarter gas and electricity networks for a low carbon future.
RIIO-T1 is the first transmission price control review to reflect the RIIO regulatory framework.
RIIO-T1 sets out what the transmission network companies are expected to deliver and details of the regulatory framework that supports both effective and efficient delivery for energy consumers over the eight years from 2013 – 2021.
You can read our RIIO-T1 documentation below.