- Publication date
- 19th June 2018
- Information type
- Policy area
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
Special Condition 7D of the gas transporter licence requires National Grid Gas Transmission (NGGT) to have a Network Output Measures methodology (“NOMs Methodology”). The purpose of the methodology is to enable the comparative analysis of NGGT’s asset management performance and provide more easily understandable information for the Authority, consumers, and other stakeholders.
On 22 May 2018, the NGGT submitted the proposed modified NOMs Methodology for the Authority’s review. Having reviewed the Licensees’ submissions, we are satisfied that the modified Methodology better facilitates the achievement of the NOMs Methodology Objectives as set out in Special Condition 7D.
This notice sets out the Authority's intention not to reject the modified methodology. The modified NOMs Methodology (version no. 2.0) therefore comes into effect on the 19 June 2018 and NGGT is required to implement it from this date.