Future business plan

RIIO-2 Price Control Review

Ofgem, the UK energy regulator, periodically reviews the rules that determine how much we charge customers for our services. Currently, you pay us 23p a day for delivering electricity to your door. Ofgem is now deciding on new rules and what we can charge customers from 2023-2028.

Our current price control review period, RIIO-ED1, ends on 31 March 2023. Work is already underway to set the framework for our next price control review period, RIIO-ED2. Ofgem is consulting on how we should serve our customers, including new obligations, standards or services and how much we should charge.

Exploring future needs

We expect to see significant changes in our customers' day to day electricity usage and needs between 2023-2028. The uptake in electric vehicles, meeting the national 2050 'Net Zero' targets and our local Greater Manchester Combined Authority 2038 targets are just a few examples. We are now engaging with a wide range of customers and stakeholders to identify and understand those needs and improvements in customer service, environmental initiatives, social or community benefits. We're taking all feedback and translating it into actionable outcomes in our RIIO-ED2 business plan.

Why are we regulated?

Providing secure, reliable access to electricity is an essential service. As we all rely on the local distribution network for our energy supply, having one company that is accountable for the distribution of electricity, makes management of the network much more efficient, stable and secure, than it would be if the local network was operated by many companies. This means we avoid the need to duplicate expensive power cables or substations and keep bills low for everyone. 

This is why Electricity North West Ltd, like all other GB Distribution Network Operators are monopoly businesses in the areas where they operate. This is to ensure a more effective and efficient delivery of critical services, to keep the lights on for us all. We have a licence, or permission, from Ofgem to serve you on the basis that we deliver on our obligations, or ‘Licence Conditions’. Ofgem oversees and agrees what we can charge you for the services we provide. We periodically put forward business plans to Ofgem who check them to make sure they are fair.

We have a strong track record of developing fair plans and delivering on our promises. The results we're delivering now are assessed in our business plan commitments report and show our great progress to date.

Our North West customers’ and stakeholders’ views are paramount in helping to shape the rules for our next price review control period. To date, we have consulted our own Advisory Panels on issues raised by Ofgem in their 2019 RIIO-ED2 Open Letter and are consulting again now on questions raised by Ofgem’s RIIO-ED2 Sector Specific Methodology Consultation.

Previous consultations and our responses

ED Sector Specific Methodology Consultation 

Ofgem issued a consultation in July on our Electricity Distribution Sector Specific Methodology. The consultation can be found here. Our response is below

RIIO-2 Draft Determinations

Ofgem issued a consultation on their RIIO-2 Draft Determinations for Gas Distribution and Transmission, Electricity Transmission companies and the ESO. The consultation can be found here, and our response is below.

RIIO 2 Contingency Plan Open Letter

Ofgem issued an pen letter to stakeholders proposing a contingency timeline for the RIIO-2 Gas Distribution and Transmission, Electricity Transmission and the ESO process. You can read more about Ofgem's contingency proposals here.

Net Zero Reopener Consultation

Ofgem issued a letter to its RIIO-ED2 working group members discussing the potential to include a Net Zero Reopener within the price control. 

Our response

Ofgem Open Letter Consultation on the RIIO-ED2 Price Control and position paper on Distribution System Operation (DSO)

Ofgem launched two consultations on 6 August 2019 which closed on 15 October 2019. The RIIO-ED2 consultation can be found here and the DSO position paper can be found here.

Our responses

Ofgem's RIIO-2 sector specific and cross sector consultation

This consultation was launched on 18 December 2018 and closed on 14 March 2019. It can be found here.

Our response

Ofgem's RIIO-2 framework consultation

The consultation can be found here and Ofgem's decision can be found here.

Our response


Have a question about regulation? contact us at regulationteam@enwl.co.uk or learn more about RIIO2 on Ofgem's website.

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