In December 2012, we published our final proposals for National Grid Electricity Transmission plc (NGET) in RIIO-T1 (1 April 2013 to 31 March 2021). This was the first price control to be conducted under our new RIIO model (Revenue = Incentives + Innovation + Outputs). RIIO’s objective is to encourage network companies to play a full role in delivering a sustainable energy sector, and to do so in a way that brings value for money for consumers.
There was uncertainty around the scope of NGET’s role in the Electricity Market Reform (EMR) and the timing of any involvement at the time of setting final proposals. We therefore highlighted the fact that we had not included any allowances, outputs and incentives for EMR. Now that NGET is about to take on this role, subject to secondary legislation, we need to determine the allowances that NGET needs to cover this additional activity and the associated outputs and incentives.
This document describes the way we propose to deal with NGET’s request for funding of their EMR function (which will be supported by their EMR business plan which is due to be submitted to us by the end of September 2014).
We have also published a Decision on Revenue for National Grid Electricity Transmission's (NGET) Role in Electricity Market Reform (EMR). on 7 July 2014.