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: 17th Dec 2014
  • Closed: 19th Jan 2015
  • Consultations and responses
  • 19 Associated documents
This is a statutory consultation on the proposed modifications to special conditions (Charge Restriction Conditions) of the electricity distribution licences held by the slow-track licensees. This is part of the RIIO-ED1 price control.

  • Published: 17th Dec 2014
  • Open letters and correspondence
  • 1 Associated documents
This letter describes corrections of errors in some of the RIIO-ED1 Final Determinations documents which we have incorporated in the licence modifications set out in the RIIO-ED1 slow track licence statutory consultation.

  • Published: 17th Dec 2014
  • Closed: 19th Jan 2015
  • Consultations and responses
  • 5 Associated documents
We are consulting on the introduction of Charge Restriction Conditions CRC 3A in WPD’s licence. CRC 3A includes provisions for the closeout of DPCR5 schemes.

  • Published: 17th Dec 2014
  • Closed: 19th Jan 2015
  • Consultations and responses
  • 1 Associated documents
Informal consultation on proposed changes to WPD’s licence, Price Control Financial Handbook and Price Control Financial Model under CRC 4C of WPD’s licence.

  • Published: 17th Dec 2014
  • Closed: 21st Jan 2015
  • Consultations and responses
  • 6 Associated documents
Consultation on new Data Assurance Guidance (DAG) for electricity distribution companies.

  • Published: 17th Dec 2014
  • Closed: 19th Jan 2015
  • Consultations and responses
  • 14 Associated documents
This is a statutory consultation on the proposed modifications to the standard licence conditions of the electricity distribution licences.

  • Published: 16th Dec 2014
  • Closed: 16th Jan 2015
  • Consultations and responses
  • 8 Associated documents
This consultation seeks views on the approach that we will use to assess how well DNOs do this.

  • Published: 4th Dec 2014
  • Closed: 5th Jan 2015
  • Consultations and responses
  • 9 Associated documents
This document provides feedback on this year’s Incentive on Connections Engagement trial and consults on our proposed Incentive on Connections Engagement Guidance Document.

  • Published: 28th Nov 2014
  • Decisions
  • 6 Associated documents
Our RIIO-ED1 price control final determinations for ten of the electricity distribution network operators (DNOs).

  • Published: 28th Nov 2014
  • Decisions
  • 2 Associated documents
This is the final report and comment from Ofgem on the 2014 Pensions Reasonableness Review.

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