Notice to modify the ED1 Price Control Financial Model with respect to the voluntary return of unspent Rail Electrification allowances by Western Power Distribution
Correspondence and other
Publication date
Industry sector
Distribution Network
In accordance with CRC 4A of the Electricity Distribution Licence, we are consulting on the following proposed modifications to the fast-track ED1 Price Control Financial Model (PCFM).
The reduction of Western Power Distribution’s (WPD) Rail Electrification allowance by £77m, to account for the voluntary return of unspent Rail Electrification allowances, following the UK Government’s cancellation of a number of rail electrification schemes within WPD’s network areas .
These modifications to the ED1 PCFM follow the decision made by the Authority on 19 July 2018 to modify WPD’s licence and Price Control Financial Handbook to reflect the associated Rail Electrification costs.
We have agreed with WPD that the £77m will be spread across the last three years of the RIIO-ED1 price control and will be split between each of its four licensees, in accordance with the profile shown in both the decision document and the attached notice.
Please respond to this consultation no later than 24 August 2018. We intend for this modification to take effect by 31 August 2018 and to be included within the Annual Iteration Process, due to conclude on 30 November 2018.