Ofgem publishes 2017 annual iteration process for energy network price controls
Press release
Publication date
Industry sector
- Distribution Network
- Offshore Transmission Network
- Transmission Network
Ofgem has today published the 2017 annual iteration process (AIP) for energy network companies under its Revenue=Incentives+Innovation+Outputs (RIIO) price controls.
The AIP updates base revenues across Ofgem’s four price controls (for electricity distribution, gas distribution, electricity transmission, and gas transmission) for the next regulatory year (2018/19).
The AIP process involves making annual adjustments to the revenue Ofgem allows networks to collect. For example, the 2017 process brings into effect previously announced decisions such as reductions in revenue from the mid-period review into the 2013-2021 gas and electricity transmission price controls, and following the performance review of electricity distribution companies under their 2010-2015 price control.
In total, the AIP will reduce base revenues in 2018/19 by £638 million compared to the assumptions made at the start of the price controls.
We have also published updated price control financial models (PCFMs) for the price controls here:
RIIO-ED1 Financial Model following the Annual Iteration Process 2017
RIIO-GD1 Financial Model following the Annual Iteration Process 2017
RIIO-ET1 Financial Model following the Annual Iteration Process 2017
RIIO-GT1 Financial Model following the Annual Iteration Process 2017
Further information
For media, contact:
Chris Lock: 0207 901 7225
Media out of hours mobile: 07766 511470 (media calls only)
For investors, contact:
Martin Young: 0207 901 7114
About Ofgem
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
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