Direction under Part C of Charge Restriction Condition 2G (the Losses Discretionary Reward) to issue the Losses Discretionary Reward Guidance Document
Decision
Publication date
Industry sector
Distribution Network
Previous consultation
In our RIIO-ED1 Strategy Decision we outlined our intention to implement a mechanism called the Losses Discretionary Reward (LDR). The aim of the LDR is to encourage and incentivise DNOs to undertake additional actions to better understand and manage electricity losses on their networks.
The LDR Guidance Document outlines the scope of the incentive and provides DNOs with overview of both the submission and assessment process for the LDR.
We issued a notice to consult on the proposed text for the LDR Guidance Document in September 2015. We received five responses.
This direction formally issues the LDR Guidance Document. It also includes an annex which provides a summary of the responses we received from stakeholders to our notice, our responses to them and any changes we have made to the guidance document as a result. An updated final version of the LDR Guidance document is also included.