The energy system in Britain is transitioning to a low carbon future with new, smaller, and more diverse parties entering the market. Our unique position operating the National Electricity Transmission System gives us the perspective and reach to play a pivotal role in this transformation. In this section you can learn more about our role, how we are transforming, and how our regulatory framework is changing to facilitate our role in the energy transition.
Our licence is established under the Electricity Act 1989. It requires us to develop, maintain, and operate economic and efficient networks and to facilitate competition in the supply of electricity in Great Britain (GB). It also gives us statutory powers, including the right to bury our pipes or cables under public highways and the ability to use compulsory powers to purchase land so we can conduct our business.
RIIO price controls
Our regulatory framework is called RIIO (revenue = incentives + innovation + outputs) and lasts for eight years. The current period runs through April 2021. The building blocks of the RIIO price control are broadly similar to the historical price controls used in the UK, but with some significant differences in the mechanics of the calculations.