We are licensed to distribute electricity in the North West of England, providing services to electricity supply companies. Around 23p from every pound that you pay your electricity supplier comes to Electricity North West to enable us to manage and maintain the network.
The price that we charge for distributing electricity is regulated by the Gas and Electricity Markets Authority (GEMA), which operates through the Office of Gas and Electricity Markets (Ofgem). Ofgem regulates the industry using different types of price controls.
Our current price control
Our current price control began in 2015 and runs to 2023. It's referred to as RIIO-ED1. In full, that stands for Revenue = Incentives + Innovation + Outputs, Electricity Distribution 1. Using this framework, the prices we can charge to our customers are reviewed every eight years. Our ED1 business plan was published in 2014 and you can see it using the link below. Our next price control will be called RIIO-ED2 and will run from 2023 to 2028.
Each year we publish a summary of our performance against the business plan commitments. These documents allow customers to understand how we're performing in the price control. You can read our reports below.
Under the RIIO model there is a much greater emphasis on companies to:
- improve customer service and engagement
- develop a more sustainable energy sector; and
- deliver value-for-money network services for customers today and in the future.
A key factor under the RIIO model is a move to setting the outputs that network companies are expected to deliver. These outputs act as a contract between us, the network company and you, our customers.