Electricity System Operator's Mid-Scheme Review 2021-23
Reports, plans and updates
- Publication date
- Industry sector
- Transmission Network
In April 2021, we introduced the RIIO-2 price control for the Electricity System Operator (covering the period between 2021-26). We introduced a pass-through funding approach, supported by incentives to deliver value for money. The incentives framework runs over a two-year period (aligning with the business plan period). We evaluate the ESO’s combined performance on outputs and costs, across three distinct roles and the incentives provide the ESO with additional returns where the ESO has delivered exceptional performance.
We have published two reports today on the ESO's performance for the year of the scheme (covering the period April 2021- March 2022). These reports build on our previous six-month review.
- The ESO Performance Panel's mid-scheme review
- Ofgem’s mid-scheme review
Ofgem alongside the independent Panel have each identified areas where the ESO is performing in line with expectations, where it is exceeding expectations and where it is not meeting expectations. This will give the ESO early feedback on its performance and the opportunity to act on this and make any necessary improvements during the remaining months of the scheme.
We have taken the views of the Panel into account as part of our Ofgem assessment.