RIIO-GD1 Price Control Financial Model - summary of recent modifications
Guidance
Publication date
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Distribution Network
The summary of modifications to the GD1 Price Control Financial model (PCFM) following the Annual Iteration Process(AIP) in November 2013 are listed below:
Summary of modifications
On 15 September 2014, the Authority modified the GD1 PCFM by:
Amending the annual spread of the Legacy Allowed Revenue (LAR) calculation, which was previously hard coded, to:
- spread the initial legacy revenue when the cost of debt is updated; and
- correct the Weighted Average Cost of Capital (WACC) used to spread legacy revenue.
On 14 October 2014, the Authority modified the GD1 PCFM by:
- moving the allowance allocated to Repex tier 2 mains (RE) from the row for non- variant allowed repex in the PCFM to the relevant row for the RE allowance.
On 8 September 2015, the Authority modified the GD1 PCFM by:
- amending a formula on the Input worksheet, to ensure that appropriate time value of money factors are applied to the spreading of legacy adjustment values across the RIIO-GD1 price control period; and
- amending the Tax Trigger worksheet to allow different Tax Trigger Type B event values to be entered for each licensee.