RIIO-2 methodology for the Electricity System Operator – decision and further consultation

Publication date
28th August 2019
Closing date
25th September 2019
Policy areas

In May 2019, we made decisions on key aspects of the RIIO-2 price control methodology for the Electricity System Operator (ESO). Alongside this decision we ran a further consultation on the funding model for the ESO. This was to obtain additional stakeholder views on the most appropriate remuneration approach prior to making a final decision. This document confirms our approach to the funding model for the ESO.

In this document, we are also consulting further on two aspects of the ESO’s RIIO-2 price control. The first is the methodology we will use to calculate the financial parameters within our chosen funding model. The second is on potential changes to the ESO’s incentives scheme. We aim to publish a decision on the financial methodology and key aspects of the incentives later in the Autumn. For the incentives, where possible and appropriate, we may bring in some changes early for the ESO incentives scheme in 2020/21.

Please send your responses by 25 September 2019 to RIIO2@ofgem.gov.uk