Decision to not reject modified electricity transmission Network Output Measures (NOMs) Methodology Issue 18
Decision
Publication date
Industry sector
Transmission Network
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Our 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 (in particular, the network assets condition measure, the network risk measure and the Network Replacement Outputs) help to quantify the impact of the companies’ network expenditure.
Electricity transmission licences require Great Britain’s onshore electricity transmission network owners (TOs) to have a Network Output Measures methodology (“NOMs Methodology”) to explains how we can quantify the impact of the actions taken and expenditure incurred by the companies on their networks, and to enable Ofgem and stakeholders to see what the companies have delivered and what to expect in return for future investments.
The electricity transmission licensees submitted a modified NOMs Methodology on 10 July 2018. This letter sets out the Authority's decision not to reject the modified methodology. The NOMs Common Methodology documents have been published along side this letter. This version of the methodology (Issue 18) is effective from 08 August 2018.