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

UK Power Networks’ (UKPN) chief executive has stressed that distribution network operators must spend “only what is necessary, not what is allowed” over the next five-year price control period. Basil Scarsella spoke to Utility Week about the network's ED2 business plan, his vision for an independent distribution system operator and why UKPN aims to become a “disruptor”.
News
A senior figure at Northern Powergrid has said the company is being “careful” not to “overpay” for flexibility and suggested some distribution network operators (DNOs) may be procuring more than they actually need “just to have a high number”. Discussing the company’s draft business plan for the RIIO2 price controls, policy and markets director Patrick Erwin said it is also refraining from creating separate body to perform its distribution system operator (DSO) functions, describing this as an “artificial distinction”.
News
Northern Powergrid has urged Ofgem to return to a shorter asset life for new investments by electricity distribution networks to ensure intergenerational equality and prevent a future rise in energy bills. Speaking to Utility Week following the publication of its draft business plan for the RIIO ED2 price controls, the company’s policy and markets director Patrick Erwin also accused the regulator of becoming “politicised” and “behaving in a way that could be trying to get the right headline rather than the right outcome.” He insisted "the jury's out" on the leadership of Ofgem.
News
The Competition & Markets Authority (CMA) is due to deliver its preliminary judgement on the appeals against Ofgem’s RIIO2 price controls next month. In her latest column exclusively for Utility Week members, Maxine Frerk examines what we can learn from the arguments put forward so far.
Opinion
All six electricity distribution network operators (DNOs) across Great Britain have now submitted their draft business plans for the RIIO-ED2 price control to Ofgem, with spending plans amounting to £23.2 billion. Utility Week looks into the details.
News
Great Britain’s electricity distribution networks today submit their draft business plans for the next price control period, RIIO-ED2. John Spurgeon, head of regulation at the Energy Networks Association, takes a closer look.
Opinion
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
Wales and West Utilities has argued the Competition and Markets Authority’s (CMA) final decision on the PR19 appeals by water companies has “no material bearing” on its grounds for appeal against Ofgem’s final determinations for the RIIO2 price controls. The gas distribution network's submission to the CMA was in stark contrast to its fellow appellants.
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
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