Regulatory Impact Assessment for Registered Power Zones and the Innovation Funding Incentive

Publication date
23rd March 2004
Policy area

♦ Innovation Funding Incentive a mechanism to encourage DNOs to invest in appropriate R&D activities; and ♦ Registered Power Zones a mechanism to encourage DNOs to develop and demonstrate new, more cost effective ways of connecting and operating generation on their systems. The primary objective of introducing these incentives is to secure benefits for consumers. This RIA considers the current levels of DNO investment in RD&D, the regulatory constraints in this area, the potential for innovation and the likely benefits that it could deliver. This RIA is supported by an independent assessment of the value of innovation carried out by Mott MacDonald and BPI which will be published separately. This RIA concludes that the potential value to be derived through innovation is likely to considerably exceed the cost of the IFI and RPZ incentives. It therefore provides appropriate justification to proceed with the IFI and RPZs.