What is an evaluative incentive scheme?

Under the ESO’s evaluative incentive scheme, a Performance Panel scores how well we have delivered the objectives set out in our RIIO-2 business plan.

Our regulator, Ofgem, then converts these scores into a financial reward or penalty.

The RIIO-2 framework divides the ESO’s activities into three roles:

• Role 1: Control centre operations

• Role 2: Market development and transactions

• Role 3: System insight, planning and network development

The reports on this page perform part of the evaluation process, and provide a transparent summary of our activities.

Performance documents 2021-23

How we report on our progress

The Performance Panel assesses our performance according to five criteria: 

1. Plan Delivery (completing the activities set out in the Delivery Schedule)

2. Metric Performance (please refer to the metrics set out by Ofgem in annex 1 of the ESORI guidance)

3. Stakeholder Evidence

4. Demonstration of Plan Benefits

5. Value for Money

In line with Ofgem’s ESORI guidance, we publish a report on this page every month. The reports vary in their contents and significance: 

The Performance Panel scores the ESO’s performance every six months, and Ofgem will decide on our financial reward at the end of the two-year “Business Plan 1” period (in summer 2023). 

See the latest updates from Ofgem on their website

Recent reports