Future business plan

RIIO-2 Price Control Review

The process called a price control review has started for developing the rules that will set what you pay us from April 2023. The current amount you pay us for connecting you with electricity is 23p per day. The rules called RIIO-2 are being developed by Ofgem, the energy sector regulator.

It wouldn't make sense to have wide scale duplication of the electricity distribution network. This is because it would cost more to have two small wires when one slightly bigger one would be sufficient. It would also be disruptive to communities to be digging up roads twice to lay two cables. So one organisation has permission from Ofgem to be the electricity distribution company that serves you. As well as saying who can be an electricity distributor, Ofgem also 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.

We are currently in a price control review period called RIIO-ED1. This period ends on 31 March 2023. Work is already underway to set the framework for RIIO-2 that applies to all energy network companies (i.e.transmission, gas and electricity distribution). RIIO-2 will feed into what RIIO-ED2 looks like which starts on 1 April 2023 and is likely to run for five years.

The period of time which the RIIO-2 price controls cover will see significant change in what you need from us such as more people using electric vehicles. We will ask you what you need from us such as even better customer service, improved environmental outcomes or social and community benefits. We already talk to many customers everyday but we also have specific customer panels which we discuss and test our ideas with. Your views will be taken into account to help plan how RIIO-2 will work.

 

We engaged a broad range of stakeholders during October 2019 through our Advisory Panels on issues contained in Ofgem’s RIIO-ED2 Open Letter. We want to help them engage directly with Ofgem and also to seek their latest insights to reflect in our thinking shared with Ofgem. This is an example of how we are gaining input to shape our proposals for RIIO-ED2. The engagement happened through face to face discussion and also using more conscise sets of questions tailored to stakeholders interests to mitigate them needing to read the full ofgem documents.

We want to share our views on the development of the RIIO-2 framework as they are developed and welcome your input into our thinking. Ofgem uses open and transparent processes for developing how RIIO-2 and RIIO-ED2 will work that includes consultations and webinars. More information about their process can be found here.

Read the key information we’ve provided to Ofgem as part of the RIIO-2 price control review framework below. 

If you have questions about regulation, you can contact us direct via RegulationTeam@enwl.co.uk.

 

 

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

Ofgem RIIO2

Learn more about RIIO2 on Ofgem's website.

Learn more