Decision on the alignment of the Gas Distribution Networks’ (GDNs’) Workbooks to Final Proposal decisions
Decision
Publication date
Industry sector
Distribution Network
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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.
On 27 November 2018, we consulted on the alignment of the Gas Distribution Networks’ (GDNs’) Workbooks to RIIO-GD1 Final Proposals (FP) . We received three non-confidential responses to our consultation, which we have considered in coming to our decision.
We have decided to apply the amendments proposed in our consultation to the GDNs’ Workbooks in order to properly align them with FP. Our decision letter summarises the background to our decision, the responses received and our views on those responses, and next steps.