Handbook for implementing the RIIO model


Publication date

Industry sector

  • Distribution Network
  • Transmission Network

RPI-X@20 is Ofgem's detailed review of energy network regulation. We have looked at how best to regulate energy network companies to enable them to meet the challenges and opportunities of delivering the networks required for a sustainable, low carbon energy sector. There is considerable uncertainty about the best way to meet these challenges whilst delivering value for money for existing and future consumers.

If Britain’s energy network companies are to deliver the networks needed for a sustainable energy sector, the way we regulate them needs to change. In July 2010 we published our Recommendations consultation, on a new regulatory framework, known as the RIIO model, which we would use to develop future price controls for electricity and gas transmission and distribution network companies. Following consideration of responses to the Recommendations consultation, on 4 October 2010, the Gas and Electricity Markets Authority published its decision to implement the RIIO model which has been designed to promote smarter gas and electricity networks for a low carbon future.

This handbook is intended to give stakeholders a better understanding of ‘how’ the RIIO model works in practice. This handbook will be a living document, adapted over time to reflect learning and development as the regulatory framework is applied to price controls.