Consultation on the draft RIIO-ED1 Losses Discretionary Reward Guidance Document

Publication date
26th March 2015
Closing date
7th May 2015
Policy area

In our RIIO-ED1 Strategy Decision we outlined our intention to implement a mechanism to ensure Distribution Network Operators (DNOs) place an appropriate level of focus on losses reduction activities. Core components of this mechanism include a licence obligation, loss reduction expenditure in the business plans, a losses strategy and the Losses Discretionary Reward (LDR).

The aim of the LDR is to encourage DNOs to undertake additional actions to better understand and manage electricity losses on their networks. This consultation sets out the LDR Guidance Document which provides DNOs with an overview of both the submission and assessment process for the LDR.

We are particularly interested in the following questions:

  1. Is the Guidance clear and comprehensive, covering all relevant matters? If not, what specific information have we missed?
  2. We have provided details of how we envisage the focus of each tranche changing over the course of RIIO-ED1. Do you agree with what we are proposing?
  3. Is the submission process for the first tranche clear?
  4. Do you agree with the four criteria that DNOs will be required to provide evidence against?
  5. Is the assessment process clear?
  6. Do you agree with the process for allocating the reward amount between successful submissions?

The closing date for this consultation is 7 May 2015.