Decision on the RIIO-T1 Environmental Discretionary Reward scheme 2015-16 – electricity transmission licensees

Publication date
2nd December 2016
Information type
Policy area

The Environmental Discretionary Reward (EDR) scheme is a reputational and financial incentive in the price controls for electricity transmission licensees. The purpose of the EDR scheme is to sharpen the companies’ focus on strategic environmental considerations and organisational and cultural changes to facilitate growth in low carbon energy. We are pleased to announce the first award to Scottish Power Transmission under the scheme.

This recognises the significant work they have carried out to ensure the incentive is bedded in across the organisation. The other two transmission companies failed to demonstrate sufficient evidence to receive a reward. We encourage all three companies to build on feedback to deliver tangible improvements to their environmental performance over the next year. The letter below sets out the detail behind our decision.