Call For Input - Impact of high inflation on the network price control operation

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Publication of a Call for Input on the impact of high inflation on the network price control operation

This Call for Input considers an issue that, where inflation deviates from the long run assumption, real equity returns can vary in a manner inconsistent with the policy intent.

The document provides an initial outline of the issue, provides our initial considerations and a range of potential options which could be adopted to address the matter, and seeks stakeholder feedback.

This document should not be taken as an indication that Ofgem has concluded its assessment of the impact of this issue, is minded to take action, nor of Ofgem’s individual preference for any particular option.

We would welcome written comments on the questions outlined in the document, or any other issues you believe we should address in the review, by 26th September 2023. Please email responses to RegFinance@ofgem.gov.uk. Unless clearly marked as confidential, we will publish responses on our website shortly after the response deadline.

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