Decision on Incentives and Outputs for National Grid Electricity Transmission's (NGET) Role in Electricity Market Reform (EMR)
Decision
Publication date
Industry sector
Generation and Wholesale Market
In our April consultation, we set out how we would assess NGET’s allowances, outputs and incentives required to deliver its roles under Electricity Market Reform (EMR) from August 2014 to March 2021. These would be set using the RIIO price control model. We proposed to:
- Financially incentivise NGET to deliver effectively and deal with disputes in its first 20 months of operation. This is in addition to a reputational incentive.
- Show changes in in the licence so that suitable performance incentives are in place when NGET carries out its role as EMR Delivery Body.
This document describes sets out our decision to proceed with financial incentives, which have been slightly modified to reflect our improved understanding of NGET’s role in EMR and set strong reputational incentives.