Decision on Adjustments to the Electricity Market Reform Delivery Body Allowances
Decision
Publication date
Company
Industry sector
- Supply and Retail Market
- Distribution Network
- Generation and Wholesale Market
Related links
We are deciding on adjustments to allowances for National Grid Electricity System Operator to fulfil its role as the Delivery Body for Electricity Market Reform (EMR). These allowance adjustments apply only to the period April 2016 to March 2021 and are based on the RIIO (Revenue = Incentives + Innovation + Outputs) price control model and relate to the efficient delivery of additional requirements requested of the Delivery Body.
The Electricity Market Reform Delivery Body has achieved effective delivery of the EMR Framework, including the Capacity Market and Contracts for Difference regimes in the context of a high volume and pace of change. We recognise that the DB has driven process improvements in order to manage this change and minimise cost impacts.
Additional spend to deliver EMR over this period is associated with significant investment in the IT administration system (the ‘Portal’) which has required continuous development to maintain functionality and adapt to change.
According to National Grid Electricity System Operator’s Licence Special Condition 7D, we have made this decision using information submitted to us by National Grid Electricity System Operator and responses to our consultation on our proposals which ran from 13 August 2019 to 10 September 2019.
This document outlines our original proposals, key themes from the responses to our consultation and our decision including any implications of this decision. We also set out our proposals for a mechanism to deal with future uncertainty in Delivery Body funding requirements for this period.