Electricity System Operator's Six-Month Review 2021-23
Reports, plans and updates
Publication date
Company
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 will run over a two-year period (aligning with the business plan period). We will evaluate the ESO’s combined performance on outputs and costs, across the full spectrum of its roles and the incentives will provide the ESO with additional returns where the ESO has delivered exceptional performance.
The ESO Performance Panel and Ofgem will assess the ESO’s performance every 6 months.
We have published two reports today on the ESO's performance for the first 6 months of the scheme (covering the period April 2021-October 2021).
- The ESO Performance Panel's six-month review
- Ofgem’s six-month 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.