Non Gas Fuel Poor Network Extension Scheme Incentive Mechanism: licence modification direction

Publication date
17th December 2015
Information types
Policy areas

The Fuel Poor Network Extension Scheme (FPNES) Incentive Mechanism will incentivise the Gas Distribution Networks to exceed fuel poor connection targets we have set for the RIIO-GD1 price control period. It will do this by allowing the GDNs to retain some of the costs they incur when connecting additional eligible households above the targets we have set. The Incentive Mechanism can also penalise the GDNs if they fail to meet the connection targets.

The licence notice below implements the Incentive Mechanism into the gas transporter licences held by each Gas Distribution Network. The covering letter explains the changes we are making and summarises the responses received to the associated statutory consultation.