RIIO-2 framework decision

Publication date
30th July 2018
Information types
Policy areas

We set price controls on the companies that run the gas and electricity networks in Great Britain to ensure that existing and future consumers get the network services they require at a fair price.  We do so through the RIIO model, where we set network company Revenues using Incentives to deliver Innovation and Outputs.

In March, we consulted on the framework we will use for the next round of price controls. We have now considered the responses that we received. This is our decision on those elements of the framework that we need to settle now.

We will now develop the methodology for applying the framework for the gas distribution networks, the electricity transmission networks, the gas transmission network (including the gas system operator) and for the electricity system operator. We will publish consultations on these sector-specific methodologies in December, where we will provide further detail on our approach.