Decision on TPCR4 cost reviews and RIIO-T1/GD1 uncertainty mechanisms for enhanced security upgrades

Decision

Publication date

Industry sector

  • Transmission Network
  • Distribution Network

Decision in respect of our:

  • review of TPCR4 enhanced physical security costs (NGET, NGGT, SHE-T, SPT)
  • assessment of enhanced physical security costs for RIIO-GD1 price control period 2013-2021 (NGG and SGN)
  • assessment of enhanced physical security costs for RIIO-T1 price control period 2013-2021 (NGET and NGGT).

The proposed adjustments were submitted under NGGD’s Special Condition 3F, NGET’s Special condition 6H and NGGT’s Special condition 5E which deal with the arrangements for the recovery of uncertain costs.

The RIIO-T1/GD1 price controls for 2013-2021 allows the gas distribution and transmission owner network companies to apply to the Authority, by means of a reopener mechanism, to adjust their allowed expenditure to accommodate additional costs relating to the enhanced physical security upgrades at sites.

The network operators may propose relevant adjustments during two defined application windows, May 2015 and May 2018, where the amount exceeds the relevant materiality threshold.