We are consulting on modifying the ET1 Price Control Financial Model (PCFM), in order to implement the appropriate level of costs for National Grid Electricity Transmission (NGET) related to the Electricity System Operator (ESO) separation, as set out in the notice issued on 10 August 2018. We assessed these costs as £40.1 million for up front, one-off costs from 2016/17 to 2018/19 and £7.4 million for annual enduring costs in 2019/20 and 2020/21, for a total of £55.0 million over the current RIIO-ET1 price control period.
We intend for the PCFM modifications to be decided on in time for their inclusion in the next price control Annual Iteration Process, due to conclude 30 November 2018. We estimate that the proposed modifications would increase revenue for NGET SO (the Electricity System Operator) by approximately £43 million during the RIIO-ET1 price control period.