Consultation on the Losses Discretionary Reward submissions for tranche 1

Publication date
6th May 2016
Closing date
6th June 2016
Policy area
Status

We are consulting on the Losses Discretionary Reward (LDR) submissions for tranche 1.

The LDR aims to encourage and incentivise Distribution Network Operators (DNOs) to undertake additional actions to better understand and manage electricity losses on their networks. Tranche 1, which we are assessing now, has a maximum reward value of £8m across all applications and is predominantly forward looking. The reward is discretionary and therefore the Authority may decide that it is not appropriate to award any money to DNOs under this scheme.

Six submissions were received to be considered under tranche 1, one from each DNO group. Since receiving the submissions, we have sought clarity from the DNOs on aspects of their submissions via a Q&A session, documented in logs.

The letter welcomes views on the six LDR submissions and the corresponding Q&A logs. The consultation closes on the 6  June 2016.

Please send your responses to RIIO.ED1@ofgem.gov.uk.