We are becoming a separate company

In April 2019, the Electricity System Operator is becoming a separate company within the National Grid Group. Find out more about what this change will mean.

RIIO regulatory framework

We are regulated by Ofgem’s framework known as RIIO (Revenue = Incentives + Innovation + Outputs). The RIIO model offers network companies incentives for securing investment and driving innovation. This ensures the delivery of sustainable energy networks at the lowest cost for current and future customers. Here you can find out how we're doing in RIIO-T1 and how we're engaging with you for RIIO-2.

The current RIIO period (T1) runs to April 2021. You can find more about the RIIO-2 consultation process here soon.

RIIO timeline

We are currently in the RIIO-T1 period, which began on 1 April 2013 and runs through 31 March 2021.  You can find out more about the background of this price control on the Ofgem website.

We are now starting to build our plans for the next regulatory period, RIIO-2, which will start on 1 April 2021. You can find out more about the background of this price control on the Ofgem website.

We need to submit our RIIO-2 plans to Ofgem in 2019, so we are currently building an engagement programme based on stakeholder priorities.

What we hear as part of this engagement will form the basis of our future plans. You can find out more about our engagement work in the RIIO-2 pages here, including how to get involved.  (These pages will be coming soon.)

RIIO outputs

Under RIIO the outputs we deliver are clearly articulated and are integrally linked to the calculation of our allowed revenue. These outputs have been determined through an extensive consultation process, which has given stakeholders a greater opportunity to influence the decisions.

The output categories are:

  1. Safety: ensuring the provision of a safe energy network.

  2. Reliability (and availability): promoting networks capable of delivering long-term reliability, minimising the number and duration of interruptions experienced over the price control period, and ensuring adaptation to climate change.

  3. Environmental impact: encouraging companies to play their role in achieving broader environmental objectives–specifically, facilitating the reduction of carbon emissions–as well as minimising their own carbon footprint.

  4. Customer and stakeholder satisfaction: maintaining high levels of customer satisfaction and stakeholder engagement, and improving service levels.

  5. Customer connections: encouraging networks to connect customers quickly and efficiently.