RIIO-2 runs from April 2021 onwards and sets out price controls to determine the amount we can earn for the projects we deliver and the services we provide

What is RIIO-2?

RIIO-2 is the second set of price controls under Ofgem’s RIIO performance model. This price control makes sure that we are delivering for consumers. RIIO stands for Revenue = Incentives + Innovation + Outputs.

RIIO-2 is our first price control period as a legally separate ESO and covers our plans for a five-year period - 2021 to 2026. It provides an exciting opportunity for us to demonstrate how we can be more transparent, agile and innovative to enable the transition to a sustainable energy future.

The five-year period is designed with two-year planning cycles, recognising that the energy sector is experiencing an unprecedented level of change and that our plans need to remain flexible and agile in the face of substantial uncertainty. 

Our RIIO-2 Business Plan - What is BP2?

Our 2019 RIIO-2 Business Plan (BP1) set out ambitious goals for the period 2021 – 2026 and focused on how to meet the challenges of the changing energy landscape and maximise benefits of the energy transition for consumers. All the submission documents can be found in the on the previous plans and documents page.

The 2019 Plan is now due to be updated. Business Plan 2 ‘Accelerating the transition to a flexible, low-carbon energy system’, or BP2, is a full refresh of our RIIO-2 plans and sets out detailed proposals for years three and four of the original five-year framework, i.e. April 2023 – March 2025.  

Our Mission is to drive the transformation to a fully decarbonised electricity system by 2035 which is reliable, affordable and fair for all. We believe that the activities outlined in our plan support this Mission and deliver value for customers and consumers, providing net benefits of around £2.6 billion – a £3.40 reduction on every annual consumer bill.

Consultation on our Updated Plan

All of our draft proposal documents can be found below within the “Key publications“, “Supporting documents“ and “What are we planning to deliver?“ sections.

During 29 April to 10 June we asked for stakeholder views of our draft plan. We are now working through these responses and feeding them in, to help inform the final publication of our plan in August 2022.

If you have any business plan related queries, please contact us via [email protected].

Key Publications

Two women dancing in the rain with umbrellas and glowlines

RIIO-2 Draft Business Plan 2023-2025

BP2 is a full refresh of our RIIO-2 plans and sets out detailed proposals for years three and four of the original five-year framework, i.e. April 2023 – March 2025.

National Grid ESO - RIIO 2 business plan executive summary - Close up shot of man shopping online with mobile phone.jpg

Executive Summary

No time? Download the executive summary of BP2.

Supporting documents

National Grid ESO - RIIO 2 business plan redaction statement - City Of London aerial view

Annex 1- Supporting Information

Includes delivery roadmaps, an updated activity list and more information on Activity A22.

National Grid ESO - RIIO 2 business plan glossary - Connect the future  Shanghai China

Annex 2 – Cost Benefit Analysis

We set out expected consumer benefit of the activities in BP2.

National Grid ESO - ERSG - People working in modern office

Annex 3 – Stakeholder engagement

A summary of the engagement carried out and feedback received so far for BP2.

Thumbnail

Annex 4 – Technology Investment

Technology portfolio overview and breakdown of our latest investments, including costs, approach and solution options.

Landscape scene at dusk

Annex 5 – Future System Operator

Sets out our indicative plan for a Future System Operator.

National Grid ESO - RIIO 2 business plan performance metrics- Winding staircase with lights

Annex 6 - Glossary

This is where you can find definitions and meaning of acronyms used in BP2.

National Grid ESO - RIIO 2 business plan shared services - Trainer timing work out.jpg

Consultation Questions

Contains a list of all of our consultation questions

BP2 Consultation webinars

BP2 consultation launch

We recently hosted a webinar which launched our BP2 consultation and presented an overview of our second business plan, it also included a live Q&A.

View the webinar recording

Download the webinar slides

Download the webinar Q&A

Facilitating distributed flexibility

As per stakeholder feedback and interest raised during our BP2 launch webinar, we hosted a webinar where we discussed Facilitating Distributed Flexibility. We presented our corresponding plans, which was then followed by a Q&A session.

View the webinar recording

Download the webinar slides

Download the webinar Q&A

NGESO man on bus reads phone

Consumer webinar

We recently hosted a webinar where we spoke with stakeholders about how we can empower consumers to participate in a flexible energy system. We covered off various topic areas of interest, including net zero market reform, consumer flexibility and facilitating distributed flexibility.

View the webinar recording

Download the webinar slides

What are we planning to deliver?

In RIIO-2 BP2, we are planning to deliver numerous activities against each of the following areas:

  • Role 1 - Control centre operations

  • Role 2 - Market development and transactions

  • Role 3 - System insight, planning and network development

National Grid ESO - RIIO 2 business plan finance report - Businesswoman Using Mobile Phone While Analyzing Data On Desk In Office

Delivery Schedule

Find out more about these activities and milestones from our Delivery Schedule.

Download the full delivery schedule

Download the streamlined delivery schedule

National Grid ESO - incentives performance report - The Quiraing

How we’re performing

See all performance documents which support our evaluative incentive scheme.

Find out more

You may also be interested in:

National Grid ESO - Operability Strategy - Solar city

Operability Strategy

Read about the challenges we face in maintaining an operable electricity system and how we’re planning to address them.

National Grid ESO - Markets transformation roadmap - Solar panels and wind turbines in field.jpg

Markets Roadmap to 2025

Read more about the ESO’s vision to transform markets.

National Grid ESO - RIIO 2 business plan pathfinder signpost- Colleagues testing virtual reality set

NOA Pathfinders

We’re actively looking for solutions to specific challenges in the electricity system – read about our pathfinders to find out more.

Futuristic laptop keyboard Getty-1033950792.jpg

Digitalisation Strategy 2022

Our latest digitalisation strategy details our plan for delivering open data and digitalisation across the ESO.

Connect the future.png

Digitalisation Strategy and Action Plan - December 2021

Our December 2021 digitalisation strategy and action plan shows how we are putting customers first in our digitalisation journey.

National Grid ESO - RIIO 2 business plan digitalisation strategy 2020 - looking at phone on city bridge

Digitalisation Strategy 2020

An updated view following submission of our Digitalisation Strategy in December 2019.

National Grid ESO - RIIO 2 business plan digitalisation strategy 2019 - woman on bridge with phone

Digitalisation Strategy 2019

This sets out our strategic intent to transform our capabilities through the three pillars of our digital strategy.