Decision - Modification in relation to RIIO-GD1 Gas Distribution Price Control - Regulatory Instructions and Guidance

Publication date
30th May 2014
Information type
Policy area

The purpose of this document is to provide instructions and guidance to enable the gas distribution network operators (GDNs) to complete the associated reporting templates.

This is the final version of instructions and guidance following our consultation and publication on 16 April 2014. We corrected the minor errors and issues identified by the GDNs. We are also publishing National Grid’s formal response to the consultation.

Background

In August 2013 we published a set of regulatory instructions and guidance (RIGs) and reporting templates.  We modified the RIGs following a review and pilot testing by the gas distribution network operators (GDNs). We corrected the minor errors and issues identified and also expanded our guidance on the supplementary commentary required for the 2013-14 reporting year. We have finalised the RIGs which will be issued for annual reporting. This publication refers to Version 1.1 for the RIGs and regulatory reporting templates (RRPs) as stated below:

  • RIIO-GD1 Gas Distribution Price Control – Regulatory Instructions and Guidance: Version 1.1
  • RIIO-GD1 Gas Distribution Costs and Outputs Reporting Template: Version 1.1
  • RIIO-GD1 Gas Distribution Revenue Reporting Template: Version 1.1

This is the first price control to be conducted under our new RIIO (Revenue = Incentives + Innovation + Outputs) model. Through RIIO-GD1, we are setting the regulatory framework to apply to gas distribution companies from 1 April 2013 to 31 March 2021.

The regulatory instructions and guidance (RIGs) provide a framework which enables Ofgem to collect data from the GDNs during the RIIO-GD1 period in a consistent format. We collect data to enable us to administer the Special Conditions of the Licence (the conditions which relate to the price control) which include monitoring the performance of GDNs against our final proposals, monitor compliance with price control obligations and to allow analysis between price controls and at the subsequent price control review.

The RIGs inform the GDNs about the information we plan to collect, guide them on how to provide this information and enable the GDNs to put systems in place to collect the data to the detail we require.

The RIGS also collect provisional total expenditure data for use in the Annual Iteration process and the calculation of the annual modification to base revenues (MOD).