Decision on values within the stakeholder satisfaction output arrangements
Decision
Publication date
Industry sector
Transmission Network
Related proposed licence modifications
- Notice under Section 11A(2) of proposed modification to National Grid’s electricity transmission licence
- Notice under Section 11A(2) of proposed modification to SHE Transmission's and SP Transmissions electricity transmission licence
- Notice under Section 23(2) of proposed modification to National Grid Gas’ transporter licence
We’ve decided on values for the stakeholder satisfaction output arrangements, which define how the incentive operates in the RIIO-T1 price control.
A stakeholder satisfaction incentive applies to transmission owners to encourage them to be more outwardly focused and responsive to changing stakeholder needs. It provides a financial reward or penalty up to ±1% of a transmission owner’s annual revenue.
We have decided to adopt most of the values we proposed in our April 2016 consultation, with the exception of the weightings on two components in years 1-3. We’ve also decided on option 2 to apply results from the stakeholder satisfaction survey and the key performance indicators in the incentive for only years 4-8 of the price control.
To implement our decision we are consulting on modifying the TOs’ licences. Notices under section 11A(2) of the Electricity Act 1989 and section 23(2) of the Gas Act 1986 and the proposed modifications have been published alongside this letter.