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 key publications, supporting documents and what we are planning to deliver sections. Please note that Annex 4 - IT will be published on 16 May 2022. Ofgem have agreed to allow us additional time to meet the full requirements of their ESO BP2 IT Investment Plan Guidance Document.
We are now asking for stakeholder views of our draft plan which we will use to help inform the final publication of our plan in August 2022. Our consultation is open from 29 April to 10 June and there will be a variety of ways for stakeholders to feed back.
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. You can now view the recording, and download the slide pack.
Please use the Consultation Proforma to access and respond to the consultation questions, or contact us via [email protected] for any Business Plan queries.
