RIIO-ED1 network price control

The RIIO-ED1 price control set the outputs that the 14 electricity Distribution Network Operators (DNOs) need to deliver for their consumers and the associated revenues they are allowed to collect for the eight-year period from 1 April 2015 to 31 March 2023.

RIIO-ED1 is the first electricity distribution price control to reflect the new RIIO (Revenue = Incentives + Innovation + Outputs) model for network regulation. RIIO is designed to drive real benefits for consumers. It provides the companies with strong incentives to step up and meet the challenges of delivering a low carbon, sustainable energy sector at value for money for existing and future consumers.
 
In February 2014 we published our decision to settle Western Power Distribution's price control early (termed 'fast-tracking'). We issued WPD’s licence conditions for RIIO-ED1 in May 2014.

In November 2014 we published our final settlements (final determinations) for the 10 companies remaining in the process. We issued their licence conditions implementing these determinations in February 2015.

Elements of the RIIO-ED1 price control were appealed to the Competition and Markets Authority (CMA) by a supplier, British Gas (BG) and a DNO, Northern Powergrid (NPg). The CMA published its decisions in September 2015. It upheld part of one of BG’s five grounds, and one of NPg’s three grounds. The decision on BG’s appeal applies to the 10 slow-track DNOs. NPg’s decision only applies to its two licensees. We have amended the licences according to the CMA’s orders, which we have published for reference below. The latest version of the licences can be accessed from the electronic public register.

Publications and updates

  • Published: 24th Jun 2015
  • Closed: 5th Aug 2015
  • Consultations and responses
  • 16 Associated documents
This is an open letter to invite interested parties to share their views on the development and introduction of a new form of regulatory accounts which we propose to call RIIO Accounts. We would like your responses to reach us by 5 August 2015

  • Published: 18th Jun 2015
  • Decisions
  • 32 Associated documents
The regulatory instructions and guidance (RIGs) are the main way we get information from the electricity distribution network operators (DNOs). This version 1 is for RIIO-ED1 and applies from 1 April 2015.

  • Published: 21st May 2015
  • Closed: 16th Jul 2015
  • Consultations and responses
  • 3 Associated documents
All regulated energy network operators operate closed defined benefit pension schemes. These are a substantial expense to consumers and we believe it is appropriate to review our policy towards them. This document seeks views on our proposed model of...

  • Published: 28th Apr 2015
  • Decisions
  • 1 Associated documents
Letter setting out our decision on guidance we will issue to licensees intending to make submissions to the Innovation Roll-out Mechanism.

  • Published: 24th Apr 2015
  • Decisions
  • 1 Associated documents
This letter summarises the changes we have made to the regulatory instructions and guidance for the electricity distribution networks since our consultation in January 2015.

  • Published: 24th Apr 2015
  • Closed: 22nd May 2015
  • Consultations and responses
  • 16 Associated documents
This notice contains the proposed new regulatory instructions and guidance (RIGs) for the electricity distribution networks (DNOs). Please let us know, within 28 days, if you have any comments on the proposal.

  • Published: 1st Apr 2015
  • Decisions
  • 2 Associated documents
This direction formally issues the Incentive on Connections Engagement Guidance Document.

  • Published: 26th Mar 2015
  • Closed: 7th May 2015
  • Consultations and responses
  • 9 Associated documents
This is a consultation on the draft RIIO-ED1 Losses Discretionary Reward (LDR) Guidance Document. The purpose of the guidance is to provide DNOs with an overview of both the submission and assessment process for the LDR.

  • Published: 4th Mar 2015
  • Open letters and correspondence
  • 0 Associated documents
Northern Powergrid’s two DNOs and British Gas have sought permission from the CMA to appeal against elements of our RIIO-ED1 slow-track settlement.

  • Published: 4th Mar 2015
  • Decisions
  • 3 Associated documents
We are modifying WPD’s Price Control Financial Handbook and Price Control Financial Model under CRC 4C Price control update provisions for WPD. We are updating stipulated values and aligning the common content of the ED1 Price Control Financial Handbook...

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