Gas Distribution Licensees’ consultation on Network Output Measures Methodology
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Industry sector
Distribution Network
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 help to quantify the impact of the companies’ network expenditure.
Gas transporter licences require Great Britain’s Gas Distribution Networks (GDNs) to have a Network Output Measures methodology (“NOMs Methodology”) to explains how to quantify the impact of the actions taken and expenditure incurred by the companies on their networks. This will enable Ofgem and stakeholders to see what the companies have delivered and what to expect in return for future investments.
We approved the GDN’s NOMs Methodology on 15 December 2015 (Gas Network Output Measures Methodology Decision). At the same time we also issued a direction to them to undertake additional work to further modify the Methodology. The GDNs have now modified their NOMs Methodology and published it for consultation on the Energy Networks Association’s (ENA) website. They are seeking views on their proposals by 8 August 2017. Following consideration of any representations they receive during the consultation period, the GDNs may further modify their NOMs Methodology and will submit it for Authority approval.