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ESO
Business planning (RIIO)
Here, you can find out more about how we’re setting ourselves up to deliver our ambitious proposals against a backdrop of rapid changes in the energy industry, how we’re performing against our Forward Plan and how you can share your views with us.
Stakeholder-led business planning
The energy landscape is changing at a rapid pace, driven by decarbonisation, decentralisation and digitisation. We have a significant role to play in facilitating this transition but we need the insight and support of our customers and stakeholders to make sure we focus on the right areas.
As we developed our business plan, we wanted to gain insight from you, our stakeholders. By working together, we have made sure we reflected your priorities and ultimately drive real benefits for consumers.
Our RIIO Business planning
Our business planning is developed within the context of Ofgem’s regulatory framework, known as RIIO (Revenue=Incentives+Innovation+Outputs). The framework sets price controls to determine the amount we can earn from the services we provide.
The current regulatory price control period is known as RIIO-T1 and runs from 2013 to 2021. The next regulatory period, RIIO-2, runs from April 2021 onwards. You can find out more about how we plan for these two timeframes below.
Forward Plan to 2021
Published each financial year, our Forward Plan describes what we’re planning to do to deliver benefits for our customers and stakeholders.
This allows you to hold us to account for delivery and enhances our levels of transparency, engagement and accountability.
Future planning 2021 onwards
Over the last two years we have been preparing our business plan for Ofgem’s RIIO-2 regulatory price control, which starts on 1 April 2021. The plan sets out the activities that we will undertake, the investments we’ll make, how we’ll innovate for the future and the performance outcomes upon which we’ll be measured.
We want to make sure our plan reflects a broad range of views about our role in the changing industry. There is still chance to get involved in the future discussions of the proposals as they are finalised.
How we’re performing
Since publishing our first ESO Forward plan in March 2018, we’ve been achieving a strong baseline performance, and in many areas we’ve exceeded it.
Find out, through our monthly, quarterly, half-yearly, and yearly reporting, how we’ve been improving our processes and transparency, while developing new products and services to create real consumer value.
