- Publication date
- 24th February 2017
- Information types
- Policy areas
The RIIO-T1 price control provides for a mid-period review of output requirements. In May 2016 we decided to launch an MPR for RIIO-T1 and look at certain outputs for National Grid Electricity Transmission and National Grid Gas Transmission.
In August 2016 we set out our minded-to position to change outputs and associated funding. After considering stakeholder responses we have made our decision to reduce National Grid’s allowances across gas and electricity by £185 million.
We have decided to remove National Grid Gas Transmission’s Avonmouth pipelines output and £168.8 million in funding, as the pipelines are no longer required. We have also decided to reduce National Grid Electricity Transmission’s allowances by £16.6 million. This reflects a reduced requirement to protect sites against rising fault levels (lowering allowances by £38.1 million) and new requirements relating to the new enhanced system operator role (increasing allowances by £21.5 million).
We intend to implement these decisions by modifying the Price Control Financial Models (PCFMs), which form part of the licences, for NGET and NGGT in 2017 so that revenue changes can take effect from 1 April 2018.