RIIO-1 NOMs Incentive Mechanism Consultation
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closing date
Industry sector
- Transmission Network
- Distribution Network
Licence type
- Electricity Distribution Licence
- Electricity Transmission Licence
- Gas Transporter Licence
Decision
The purpose of this consultation is to seek views on changes to the Network Output Measures (NOMs) Incentive Methodology. A key part of the RIIO (Revenue = Incentives + Innovation + Outputs) framework, NOMs are mechanisms that provide a means to monitor and assess the network asset management outcomes that network companies deliver. They represent the service delivery resulting from companies’ asset interventions, and can be considered as a forward-looking indicator of network performance.
The existing NOMs Incentive Methodology was published in December 2018. At the time, it was recognised that there were a number of outstanding issues that would require further clarification. The purpose of this consultation is to address these outstanding issues and update the NOMs Incentive Methodology. This is necessary in order to guide the process for assessing network companies’ performance in delivering their NOMs outputs during RIIO-1.
The changes being consulted on in this document will apply to the three sectors whose RIIO-1 price controls ran for the period 1 April 2013 - 31 March 2021, i.e. Gas Distribution, Gas Transmission and Electricity Transmission.
Respond name
Thomas McLaren