RIIO is our approach to ensuring the monopoly companies who run our gas and electricity networks have enough revenue to run an efficient network that delivers what customers need and supports the transition towards homegrown, cleaner, cheaper, and more secure sources of energy. It stands for setting Revenues using Incentives to deliver Innovation and Outputs.
The current electricity distribution price control (known as RIIO-ED1) ends on 31 March 2023. The next price control (known as RIIO-ED2) will cover the five-year period from 1 April 2023 to 31 March 2028.
We published our Draft Determinations for the RIIO-ED2 price control on 29 June 2022 for consultation. The consultation closed on 25 August 2022 and our decisions, having taken account of all consultation responses, are set out in these Final Determinations. These Final Determinations will be followed by a statutory consultation on the licence modifications required to implement the RIIO-ED2 settlement in December 2022.
Final Determinations Questions (FDQs):
We are running a FDQ process open to all stakeholders from 5th December 2022 until 20th January 2023. A FDQ form can be found in the technical annexes folder of our Final Determinations on which you can submit your question and send this to RIIOED2@ofgem.gov.uk.
FDQs should be limited to:
- seeking clarification on the text within the Final Determinations document suite
- notifying Ofgem of any methodological errors in, for example, the cost models. Where an error has been identified, we expect stakeholders to set out the alleged error, their view on how this can be corrected, and any knock-on effects elsewhere in the price control, eg. on other models, any interlinked decisions etc.