Notice of our provisional revised pension allowance values and 2017 reasonableness review
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Industry sector
- Distribution Network
- Transmission Network
Related links
- Decision on Ofgem's policy for funding Pension Scheme Established Deficits
- Direction to make modifications to the Pensions Regulatory Instructions and Guidance for RIIO Network Operator Licensees
- Modification of the financial instruments as defined in the special conditions held by Network Operators Licensees
Decision
Triennially we carry out a review of RIIO network companies’ pension scheme established deficits, which consumers fund through their energy bills. The companies, as part of their revenue, currently receive annually over £550 million in allowances. Our review looks at the latest valuations and the governance arrangements the companies have in place. The review can revise the allowance we have set previously; these are based on the latest valuations, company proposals and/or if we consider the governance arrangement the companies have had in place is not appropriate.
Today we set out sets out our provisional view of the revised pension allowances and our recommendations to the NWOs for changes they may want to adopt before the next reasonableness review in 2020. The provisional revised allowances are proposing an annual reduction in allowances of £53 million for the next three years.
We will make our decision at the end of November 2017
Respond name
Mick Watson