Informal consultation on RIIO-1 price control reopeners (May 2018)
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Industry sector
- Transmission Network
- Distribution Network
Decision
Updates
- 24 May 2018: Enhanced security costs (IT systems) (Gas Transmission and Electricity Transmission)
- 23 May 2018: One off asset health costs (Gas Transmission)
- 17 May 2018: Quarry and loss development claim costs (Gas Transmission)
- 6 June 2018: Physical Security Upgrade Programme (PSUP) - For information only
- 6 June 2018: Industrial Emissions Directive (IED)
- 6 June 2018: Streetworks
Overview
The current RIIO price controls for electricity transmission and gas transmission (RIIO T1) and gas distribution (RIIO GD1) run from 1 April 2013 to 31 March 2021. For cost categories where there was uncertainty about expenditure requirements at the time of setting allowances, the price controls include a “reopener” mechanism. The mechanism allows network companies to propose adjustments to baseline expenditure allowances for these costs when there is more certainty. The reopener mechanism specifies two windows during which adjustments to allowances may be proposed – one in May 2015 and other in May 2018.
We are expecting to receive submissions from four network companies during the May 2018 window. These are National Grid Electricity Transmission, National Grid Gas Transmission, Cadent Gas and Wales and West Utilities.
We will assess these submissions in line with criteria set out in network company licences, taking account of a range of factors, including the need for the proposed expenditure, our assessment of efficient costs, and any allowances that have been previously included in baseline allowances. We are required to make our determinations on all submissions by 30 September 2018.
We will consult stakeholders and seek feedback before making our determinations. We intend to do this in two phases.
- Phase 1: We will publish non-confidential versions of network company submissions as soon as possible following submission, and seek early feedback from stakeholders. This would allow us to take account of feedback while assessing these submissions.
- Phase 2: We will consult on our “minded-to” position on all submissions in late July/early August 2018.
We are now launching phase 1 of our stakeholder consultation process. We will update this page with links to submissions as we receive them.
We welcome your views on each submissions. We are expecting submissions to cover the following uncertain cost categories:
Your views
We are particularly interested in your views on the following questions:
- Does the submission provide adequate evidence that the planned expenditure is necessary?
- Does the submission provide adequate evidence that the planned expenditure is efficient and proportionate?
- Is there any other relevant information we should consider before making our determination?
We ask that you provide your feedback as early as possible, ideally within two weeks of publication of submissions. This would allow us to take account of your responses in reaching our “minded-to” position.
Please contact gasnetworks@ofgem.gov.uk if you have any questions about the process or any of the submissions.
Respond name
Kiran Turner