Revised pension allowance values and completion of 2023 reasonableness review
Decision
Publication date
Industry sector
- Distribution Network
- Transmission Network
Triennially we carry out a review of RIIO network companies’ pension scheme established deficits, which consumers fund through their energy bills. The companies, as part of their revenue, currently receive annually £334 million in allowances. Our review looks at the latest valuations and the governance arrangements the companies have in place.
Today we complete the 2023 pension reasonableness review. This confirms the revised RIIO network companies' pension allowances and our recommendations to the companies for changes they may want to adopt before the next reasonableness review in 2026. The revised allowances will reduce revenue, across all companies, over the next three years by an annual average of £344 million.