What is Riio-T1?
About RIIO-T1 The RIIO-T1 network price control set out what the gas and electricity transmission network companies were expected to deliver for energy consumers from 2013-2021. The RIIO-T2 transmission price control came into effect from April 2021 and will run until 2026.
What is the Riio model?
RIIO (Revenue = Incentives + Innovation + Outputs) is a performance-based regulatory model created by the UK’s Office of Gas and Electricity Markets (Ofgem). RIIO seeks to reward utilities for innovation and for delivering outputs that meet the changing expectations of consumers and society.
How does national grid make money?
Distribution companies charge suppliers for using the network. Suppliers then pass this cost on to consumers through the standing charge on your energy bills.
What does Riio 2 mean?
Revenue = Incentives + Innovation + Outputs
Ofgem announced its final determinations of our Gas business plan for the RIIO-2 regulatory period covering 2021 to 2026. Ofgem’s regulatory framework is known as RIIO (Revenue = Incentives + Innovation + Outputs).
How does Riio T2 work?
RIIO-T2 is the price control for the high voltage electricity transmission networks and high pressure gas transmission networks which transmit energy across Britain from where it is generated. The price control runs for five years, from 2021-2026.
What does Riio-2 mean?
How does RIIO price control work?
Price controls balance the relationship between investment in the network, company returns and the amount that they charge for operating their respective networks. RIIO-2 is the second set of price controls implemented under our RIIO model.
What is ED2 Ofgem?
About RIIO-ED2 The RIIO-ED2 price control sets 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 five-year period from 1 April 2023 to 31 March 2028.
What does RIIO T1 stand for?
RIIO-T1: Final Proposals for National Grid Electricity Transmission and National Grid Gas Author Ofgem Subject
What is RIIO’s final proposals?
The objective of RIIO is to encourage network companies to play a full role in the delivery of a sustainable energy sector, and to do so in a way that delivers value for money for existing and future consumers. In this document we set out our Final Proposals for National Grid Electricity Transmission (NGET) and National Grid Gas (NGGT).
Does the RIIO approach affect network changes?
However, we retain the view that the RIIO approach is likely on average to result in lower increases in network changes than would have happened with the same level of investment under the RPI-X framework.
How has riio-t1 been engaged with stakeholders?
Since the start of RIIO-T1, we have adopted a multi-layered process to ensure that all affected parties have effective opportunities to engage in the review. When we have engaged with stakeholders, we have sought to adhere to our principles for effective enhanced engagement set out in the RIIO handbook.13 1.16.