RIIO-GT1 Price Control Financial Model - Summary of recent modifications
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The summary of modifications to the GT1 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 GT1 PCFM by amending the annual spread of the Legacy Allowed Revenue (LAR) calculation, which was hard coded, to i) spread the initial legacy revenue dynamically, once the cost of debt has been updated; and ii) correct the Weighted Average Cost of Capital (WACC) used to spread legacy revenue.
On 8 September 2015, the Authority modified the GT1 PCFM by:
- updating the licensee’s opening levels of allowed expenditure in relation to Enhanced Security Costs by adding £12.6 million of SO Data centre capex, so that the values contained in the PCFM are consistent with the Authority’s final proposals for the RIIO-GT1 price control; and
- applying an appropriate label to the NGGT SO Input worksheet of the PCFM.