Since the start of RIIO-2 in April 2021, we have been evolving to meet the changing needs of the energy industry. And we are on track to make sure that the electricity system can support 100% zero carbon power as soon as 2025.
If you have any questions, related queries or would like to discuss our plan in more detail please contact us via [email protected].
What is BP2?
We have now published our final second Business Plan (BP2) for the RIIO-2 period: ‘Accelerating the transition to a flexible, low carbon energy system’. BP2 sets out our goals for years three and four of RIIO-2 (2023-2025) as we respond to the rapidly changing external environment. The plan includes five new activities and 16 new sub-activities to accelerate the transition to net zero.
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, delivering net benefits of around £2.8 billion.
At the end of November 2022, Ofgem released their BP2 Draft Determinations giving their initial view of, and position on, our business plan.
As Ofgem published their BP2 Draft Determinations, they also launched an accompanying consultation, which we’ve responded to. Below, you can find the links to the Executive Summary, our full consultation response and the supplementary information annex, which we submitted alongside our response:
- View Ofgem’s Draft Determinations outcomes
- View our consultation response - cover letter
- View our consultation response – Executive Summary
- View our consultation response – full response
- View our supplementary information annex
As a result of Ofgem’s feedback, we have also updated our Delivery Schedule – the latest version can be found further down this page.
We have engaged with the ERSG (our independent stakeholder group) throughout the development of our BP2. You can read their report on our final plan.
What is RIIO-2?
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. It is the second price control under Ofgem's RIIO performance model. This price control makes sure that we are delivering for consumers. RIIO stands for Revenue = Incentives + Innovation + Outputs.
It 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.
Includes delivery roadmaps, an overview of how our Business Plan content has changed, and more detail on our activities since BP1.
Sets out the expected consumer benefits of our activities in BP2.
A summary of our extensive stakeholder engagement programme and how we have used it to develop our plan.
Technology portfolio overview and breakdown of our latest investments, including costs, approach and solution options.
Definitions of acronyms and phrases used in BP2.
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
Find out more about these activities and milestones from our Delivery Schedule.
From 29 April to 10 June 2022 we asked for stakeholder views of our draft plan. We received 12 written responses from organisations including:
- The Association for Decentralised Energy (ADE)
- Country Land & Business Association
- ESO RIIO-2 Stakeholder Group (ERSG)
- National Grid Electricity Transmission (NGET)
- Northern Powergrid
- ESO Performance Panel
- Scottish Hydro Electric Transmission Plc (SSEN Transmission)
- Scottish Power Renewables
- Sembcorp Energy (UK) Limited
- SP Energy Networks (SPEN)
- SSE Group
The full written responses submitted by stakeholders, can be accessed in this Stakeholder responses document.
Watch the video presentations by pressing the play icon where available or download the slides using the link below each image.
In September 2022, we hosted a webinar which presents the changes since our draft BP2 which have been made and introduced into the final submission submitted on 31 August 2022.
In May 2022 we hosted a webinar which launched our BP2 consultation and presented an overview of our second business plan, it also included a live Q&A.
Download the Q&A from the BP2 consultation launch.
As per stakeholder feedback and interest raised during our BP2 launch webinar, we hosted a webinar In May 2022 discussing Accelerating Whole Electricity Flexibility (previously known as Facilitating Distributed Flexibility).
Download the Q&A from the Accelerating Whole Electricity Flexibility (previously known as Facilitating Distributed Flexibility) webinar.
In May 2022 we hosted a webinar 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.
You may also be interested in:
Our June 2023 Digitalisation Strategy and Action Plan publication provides an update on our end of scheme position for Business Plan 1 and a view of our plans over Business Plan 2.
Our latest digitalisation publication provides an update on our action plan, in line with our most recent Business Plan 2 submission.
Our June 2022 digitalisation strategy and action plan outlines our latest transformation progress as we continue our journey towards zero carbon operability.
Our latest digitalisation strategy details our plan for delivering open data and digitalisation across the ESO.