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: 28th Mar 2014
  • Closed: 29th Apr 2014
  • Consultations and responses
  • 14 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 four licensees owned by Western Power Distribution plc (WPD).

  • Published: 7th Mar 2014
  • Closed: 4th Apr 2014
  • Consultations and responses
  • 1 Associated documents
This consultation sets out the Environment Report Guidance Document (ERGD), which outlines the proposed content of the Environment Report and is intended to guide DNOs in drafting their report each year.

  • Published: 28th Feb 2014
  • Other
  • 1 Associated documents
Our provisional values for the Network Innovation Allowance (NIA) which each Distribution Network Operator (DNO) will be entitled to in RIIO-ED1. The NIA is for DNOs to fund small-scale innovation projects.

  • Published: 28th Feb 2014
  • Decisions
  • 2 Associated documents
See our decision to complete the RIIO-ED1 price control review early for the four licensees owned by Western Power Distribution.

  • Published: 17th Feb 2014
  • Decisions
  • 1 Associated documents
This document sets out our decision on our methodology for assessing the equity market return for the distribution network operators in RIIO-ED1. We state our conclusion on the cost of equity for the DNOs proposed for fast-track, and our minded-to...

  • Published: 31st Jan 2014
  • Closed: 28th Feb 2014
  • Consultations and responses
  • 10 Associated documents
This document consults on our proposed changes to the Charge Restriction Conditions (CRCs) required to implement the RIIO-ED1 price control settlement.

  • Published: 10th Jan 2014
  • Closed: 7th Feb 2014
  • Consultations and responses
  • 8 Associated documents
This document consults on our proposed changes to the Standard Licence Conditions (SLCs) required to implement the RIIO-ED1 price control review for all EDNOs.

  • Published: 10th Jan 2014
  • Closed: 7th Feb 2014
  • Consultations and responses
  • 18 Associated documents
This document consults on our proposed changes to the Charge Restriction Conditions (CRCs) required to implement the RIIO-ED1 price control settlement. This is for the four licensees of Western Power Distribution.

  • Published: 19th Dec 2013
  • Decisions
  • 1 Associated documents
This letter sets out our decision on when we will set the revenue that will be recovered by electricity distribution network operators (DNOs) in 2015-16.

  • Published: 11th Dec 2013
  • Decisions
  • 1 Associated documents
This is our decision on the arrangements to determine the level of reward or penalty that distribution network operators (DNOs), will get under the customer service and connection incentives during the next price control RIIO-ED1.

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