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: 2nd Aug 2018
  • Open letters and correspondence
  • 1 Associated documents
We are taking an alternative approach to how network companies report their financial performance under the RIIO framework.

  • Published: 27th Jul 2018
  • Open letters and correspondence
  • 3 Associated documents
Proposed modification required to the ED1 PCFM to implement Western Power Distribution’s voluntary return of £77m in unspent Rail Electrification allowances.

  • Published: 19th Jul 2018
  • Decisions
  • 1 Associated documents
Changes to Western Power Distribution’s licences and corresponding Price Control Financial Handbook.

  • Published: 1st Jun 2018
  • Closed: 29th Jun 2018
  • Consultations and responses
  • 4 Associated documents
Proposed changes to WPD’s licences and corresponding Price Control Financial Handbook for the recovery of diversions costs associated with rail electrification.

  • Published: 7th May 2018
  • Guidance
  • 0 Associated documents
Governance and guidance documents for electricity distribution network operators (DNOs) and the schemes in place in the current RIIO-ED1 price control.

  • Published: 30th Apr 2018
  • Charts and data
  • 6 Associated documents
Publication of the six submissions received for tranche 2 of the Losses Discretionary Reward.

  • Published: 30th Apr 2018
  • Decisions
  • 2 Associated documents
This document sets out our decision not to launch a Mid-Period Review of outputs for the RIIO-ED1 price control.

  • Published: 16th Apr 2018
  • Decisions
  • 8 Associated documents
This direction sets out the modifications we are making to the Electricity Distribution Regulatory Instructions and Guidance.

  • Published: 21st Mar 2018
  • Decisions
  • 2 Associated documents
We are aligning the reporting requirements of the ERGD to proposals in Annex J (Environment and Innovation) of the Regulatory Instructions and Guidance (RIGs).

  • Published: 9th Mar 2018
  • Decisions
  • 1 Associated documents
This letter sets out our decision to agree to SHEPD’s request to defer the application window for Subsea Cables Costs uncertainty mechanism.

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