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

On this page, you will find the ESO RIIO-2 Business Plan, supporting annexes and our Delivery Schedule.

What is RIIO-2?

RIIO-2 is a performance-based model to make sure that we are delivering for consumers.

RIIO stands for Revenue = Incentives + Innovation + Outputs.

This is our first price control period as a legally separate ESO. 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.

Our RIIO-2 business plan: facilitating the transition to new zero carbon emissions by 2050

Our ESO RIIO-2 Business Plan is founded on a vision for the next decade and beyond, focusing on how we must evolve to meet the challenges of the changing energy landscape and maximise benefits for consumers.

The plan sets out the activities we’ll deliver to achieve our ambitions, the investments we’ll make to meet net zero targets, how we’ll innovate for the future and the performance outcomes upon which we’ll be measured.

Ours is a stakeholder-led business plan, where by working together, we have made sure that what we will deliver reflects the priorities of our customers and stakeholders, to ultimately drive real benefits for consumers.

The activities in our plan will deliver significant value to consumers, culminating in net benefits of around £2 billion over the five years - a £3 reduction on every annual consumer bill.

Climate change is the challenge of a generation, and the time to act is now.

Key Publications

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RIIO-2 Business Plan (full document)

Our ambitious Business Plan for 2021-26 sets out how we will enable the transformation to a zero carbon energy system and continue to ensure reliable, affordable energy for Great Britain by 2050.

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Executive Summary

No time? Download the executive summary of the RIIO-2 Business Plan.

Supporting documents

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Annex 1 Supporting Information

A summary of our activities proposed, benchmarking and other assumptions used in our calculations.

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Annex 2 Cost Benefit Analysis Report

We set out the expected consumer benefit of the activities in our RIIO-2 business plan.

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Annex 3 Stakeholder Report

A summary of all the engagement against topic areas and the comments we received and addressed as part of the Business Plan proposals.

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Annex 4 Technology investment report

For details on our IT investment lines and shared services supporting the ESO.

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Annex 5 Finance report

For costing details around the business plan, directly remunerated services and the impact on consumer bill.

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Annex 6 Ofgem and Challenge Group Feedback

This report details how the ESO responded to the recommendations by Ofgem and the Challenge Group from Draft Determinations.

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Annex 7 Metrics and measuring performance

This highlights the various performance measurement indicators proposed in the business plan against our deliverables.

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Annex 8 Shared Services

This report details how the costs are shared and allocated to the ESO from the National Grid group, and the governance arrangements around these.

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Annex 10 Glossary

This is where you can find definitions and meanings of acronyms used in the ESO Business Plan.

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RIIO-2 Business Plan redaction statement

Explains why certain confidential information from the Business Plan was redacted.

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RIIO-2 Board assurance statement

This is where the ESO Board recognises its collective responsibility to oversee the ESO as it evolves and engages in the transformation of the energy market.

What are we delivering?

In RIIO-2, we are delivering 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
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Delivery Schedule

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

Download PDF
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How we’re performing

See all performance documents which support our evaluative incentive scheme.

Find out more

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Operability Strategy

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

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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.

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Digtialisation strategy and action plan - December 2021

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

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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.