Outcome of our assessment under the 2022 RIIO-ED1 Incentive on Connections Engagement
Decision
Publication date
Industry sector
Distribution Network
We expect distribution network operators (DNOs) to provide a high quality service to all customers who are seeking a connection. Helping new customers connect to the electricity network is one of the most important services provided by DNOs. It enables the construction and occupation of new homes, starting up and running new businesses and producing electricity through new forms of generation.
The Incentive on Connections Engagement (ICE) was introduced to focus on large connections customers. The ICE aims to push DNOs to engage with their large connections customers and deliver on the needs of these customers. Under the ICE, if DNOs fail to engage and deliver, they could incur a penalty.
We have concluded the assessment for this year’s ICE and, overall, feedback relating to engagement from all DNOs has been positive – with the majority of respondents to our stakeholder consultation confirming they are satisfied with DNO performance. We have also received feedback of concern in some areas, which we have discussed further in our letter.
Taking everything into consideration, we believe the DNOs have met the minimum criteria under the ICE this year and as such have decided not to consult on penalties. We explain the reasons for our decision in our letter.
In the next price control period (2023-28), starting on 1 April 2023, ICE will be replaced by a new Major Connections Incentive (MCI) mechanism, as set out in our RIIO-ED2 Final Determinations published on 30 November 2022. Therefore, we are not requiring DNOs to include a Looking Forward workplan of activities covering 2023-24 in their submissions for ICE 2022-23. We will consult as usual on the DNOs' Looking Back reports covering 2022-23 later this Summer as part of our last and final RIIO-ED1 ICE annual process.