RIIO2

All the latest news and reaction on the next price controls for energy networks

Editor's picks

All eight of the gas and transmission networks are appealing Ofgem’s final determinations for RIIO2. But, what arguments have they put forward and what are their chances of success? Former Ofgem executive Maxine Frerk summarises the points raised and the challenges they pose for the Competition & Markets Authority (CMA).
Opinion
All eight of the electricity and gas transmission and gas distribution networks have now confirmed they are seeking appeals from the Competition and Markets Authority (CMA) of Ofgem’s final determinations on their RIIO2 business plans for 2021 to 2026. The only company to accept its final determination in full is National Grid Electricity System Operator.
News
As part of our Countdown to COP series, Utility Week speaks to Charles Tsai, chief executive of Power Assets Holdings, which together with sister company CKI Infrastructure owns Northern Gas Networks, UK Power Networks and Wales & West Utilities. He discusses the need for a clear investment mechanism to unleash the funding required to reach net zero and for the UK government to make commitments on decarbonisation of heat and transport.
News

Latest in RIIO2

Ofgem has urged the Competition and Markets Authority (CMA) to dismiss the appeals sought by the transmission and gas distribution networks against their final determinations for RIIO2, arguing they are “without merit”. Responding to their notices of appeal in a submission to the CMA, Ofgem said the networks’ complaints “amount to no more than disagreements” with way it has exercised its “expert regulatory discretion”.
News
Ofgem has set the baseline return on equity for investors in electricity distribution networks at 4.4 per cent for the next price control period. The decision comes as Ofgem faces appeals to the CMA from all eight of the gas and transmission networks over their final determinations. It is also ahead of next week’s CMA decision on the water appeals, where the cost of equity was a key point of contention.
News
All of the transmission and gas distribution networks have now announced plans to appeal elements of Ofgem’s RIIO2 final determinations. Utility Week brings you the latest updates and reaction in this live blog.
News
National Grid has said it will accept most of RIIO2 final determinations for its electricity and gas transmission businesses but will submit a technical appeal on the cost of equity and the outperformance wedge to the Competition and Markets Authority. It said the final determination for the Electricity System Operator will be accepted in full.
News
Analysts at Barclays have predicted each of the gas and transmission networks will appeal their final determinations from Ofgem for the RIIO-2 price control. The companies have until 3 March to accept or reject the regulator's decision on their business plans.
News
The Competition & Markets Authority (CMA) has once again extended its deadline to deliver the final redeterminations for the four water companies that appealed Ofwat’s PR19 decisions. It means that gas and transmission networks mulling their own response to Ofgem’s final determinations will not be able to take account of the CMA’s stance on cost of capital.
News
The Competition and Markets Authority has nudged back the estimated date for its PR19 final redeterminations, which are now expected to appear in "late" February. It follows a series of consultations on several areas, including the cost of capital.
News
Utility Week speaks to UK Power Networks chief executive Basil Scarsella, Electricity North West chief executive Peter Emery and Northern Powergrid policy and markets director Patrick Erwin about Ofgem’s sector-specific methodology decision for RIIO ED2.
News
In her latest column exclusively for Utility Week members, former Ofgem executive Maxine Frerk casts her eye over the regulator’s decision on the methodology for the electricity distribution network price controls.
Opinion
In its final determinations for gas and transmission networks and methodology for the electricity distribution price control, Ofgem appears to have moved much closer to the government’s vision for net zero. Nicholas Cass-Tansey and Allan Boardman, energy and utilities experts at PA Consulting, give their views.
Opinion
Electricity distribution networks will formulate their RIIO2 business plans based on centralised forecasts for demand provided by Ofgem, the regulator has announced as part of its decision on the price control methodology for the sector. Ofgem said allowing distribution network operators to develop their own regional scenarios may result in an “inconsistency in approach” that could “undermine the delivery of net zero targets at a national level.”
News
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