Notice of intention not to reject modified electricity transmission Network Output Measures (NOMs) Methodology

Decision

Publication date

Industry sector

Transmission Network

Our 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 (in particular, the network assets condition measure, the network risk measure and the Network Replacement Outputs) help to quantify the impact of the companies’ network expenditure.

Electricity transmission licences require Great Britain’s onshore electricity transmission network owners (TOs) to have a Network Output Measures methodology (“NOMs Methodology”) to explains how we can quantify the impact of the actions taken and expenditure incurred by the companies on their networks, and enables Ofgem and stakeholders to see what the companies have delivered and what to expect in return for future investments.

In April 2017, the electricity transmission licensees submitted a modified NOMs Methodology. This notice sets out the Authority's intention not to reject the modified methodology. The NOMs Common Methodology Issue 16 and associated documents that have been published alongside this notice are effective from 27 May 2017.