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: 6th Dec 2013
  • Closed: 10th Jan 2014
  • Consultations and responses
  • 23 Associated documents
On 6 December 2013 we consulted on our methodology for assessing the equity market return. This was in the light of the position taken by the Competition Commission in its provisional determination for Northern Ireland Electricity.

  • Published: 22nd Nov 2013
  • Closed: 22nd Jan 2014
  • Consultations and responses
  • 7 Associated documents
This consultation will be published alongside our assessment of the Distribution Network Operator (DNO) business plans submitted as part of the RIIO-ED1 price control review. It will consult on the Draft Determinations of any DNOs proposed for fast-track...

  • Published: 22nd Nov 2013
  • Closed: 22nd Jan 2014
  • Consultations and responses
  • 21 Associated documents
This consultation sets out the details of Western Power Distribution’s (WPD) proposed price control settlement (Draft Determinations).  We consider that only WPD’s business plans are of sufficiently high quality across the board to be finalised early (‘...

  • Published: 4th Oct 2013
  • Closed: 4th Nov 2013
  • Consultations and responses
  • 13 Associated documents
This consultation sought your views on whether there is benefit in making an earlier than proposed decision on the revenue that will be recovered by electricity distribution network operators (DNOs) in 2015-16.

  • Published: 4th Sep 2013
  • Closed: 30th Oct 2013
  • Consultations and responses
  • 13 Associated documents
In this consultation letter, we are seeking stakeholders’ views on the arrangements to determine the level of reward or penalty that DNOs will get under the customer service and connection incentives.

  • Published: 1st Jul 2013
  • Closed: 2nd Aug 2013
  • Consultations and responses
  • 38 Associated documents
This letter seeks stakeholder views on the RIIO-ED1 business plans that the electricity distribution network operators (DNOS) have submitted to Ofgem.

  • Published: 12th Apr 2013
  • Decisions
  • 3 Associated documents
This letter sets out our reasons for publishing our pension deficit allocation methodology applicable to funding our network operators’ pension deficits, and their triennial reporting as part of our Pension Regulatory Instructions and Guidance.

  • Published: 4th Mar 2013
  • Decisions
  • 7 Associated documents
This document provides an overview of our strategy decision for the next electricity distribution price control (RIIO-ED1). The review will set the revenues companies are allowed to collect for the eight-year period from 1 April 2015.

  • Published: 6th Nov 2012
  • Agendas, minutes and presentations
  • 2 Associated documents
Minutes from the October 2012 meeting of the Sustainable Development Advisory Group.

  • Published: 28th Sep 2012
  • Closed: 23rd Nov 2012
  • Consultations and responses
  • 82 Associated documents
This document provides an overview of our strategy proposals for the next electricity distribution price control (RIIO-ED1).

Pages