Consultation on the alignment of the Gas Distribution Networks’ (GDNs’) Workbooks to Final Proposal decisions

Publication date
27th November 2018
Closing date
12th December 2018
Policy area

RIIO (Revenue = Incentives + Innovation + Outputs) price control framework gives a greater focus on outputs and associated secondary deliverables. Secondary deliverables are leading indicators which enable us to monitor companies’ long-term performance. The Network Output Measures (NOMs) help to quantify the impact of the companies’ network expenditure.

Each GDN has a set of NOMs targets that reflect the asset intervention workload that they have been funded to deliver during RIIO-GD1. The target ‘Workbooks’ are based on each of the GDNs’ own methodologies for assessing the health and criticality of their network assets and the impact of their asset interventions on these parameters.

When we published the Workbooks in February 2013, the intention was that they would align with workload allowances set out in FP. While this was substantially the case, we have discovered through the course of the rebasing work program that some elements did not fully align. It is therefore necessary to correct the target misalignment before concluding our rebasing assessment.

Based on our analysis, we are satisfied that the corrected Workbooks align with the FP funded workloads that the GDNs have been working towards delivering. We consider these corrected Workbooks properly reflect the FP decision within the GDNs’ targets. We are asking for stakeholder views on the work we completed to align GDNs’ Workbooks with our FP.