Call for evidence on the electricity transmission, gas transmission and gas distribution business plans for RIIO-3
Call for input
- Open
- Closed
- Publication date
- Closing date
- Industry sector
- Distribution Network
- Transmission Network
We are seeking views and evidence from stakeholders on any aspect of the network companies’ Business Plans (BPs) for potential consideration in the RIIO-3 Final Determinations.
Who should respond
We would like to hear the views of individuals and organisations with an interest in the electricity and gas transmission networks and gas distribution networks, those with an interest in providing services and supporting the development of the networks, as well as consumers and consumer groups. We also welcome responses from government, other regulators, investors, credit rating agencies, and any other stakeholders.
Background
Ofgem sets the price controls to ensure that monopoly network companies, who run Great Britain’s gas and electricity networks, continue to act in the best interests of energy consumers. Since 2013 we have used the RIIO (Revenue = Incentives + Innovation + Outputs) framework to set price controls.
In order to set the next price control (RIIO-3), we need information from the network companies on the activities that they intend to undertake over the period 2026 to 2031 and their associated forecast costs and outputs. The network companies provide this information to us in the form of a BP.
We expect companies’ BPs to appropriately reflect stakeholder views and needs and ensure they are at the heart of their plans. We will assess the BPs during 2025, considering the needs of existing and future consumers and other relevant factors such as the transition to a low carbon economy. The network companies are then set an allowed revenue by us for the RIIO-3 period (2026-2031), which is recovered through network charges that make up around 20% of consumers’ energy bills.
Our assessment during 2025 will include further ongoing stakeholder engagement, such as a formal consultation (Draft Determinations) by summer 2025, working groups on key policy areas and close working with network companies and their Independent Stakeholder Groups (ISGs). We will conclude RIIO-3 by setting our Final Determinations in the winter of 2025.
Why your views matter
We want to hear your views on any aspect of the network companies’ Business Plans. Your responses to this consultation will help to inform our Final Determinations.
How to respond
This consultation closes on 10 February 2025. Please send your response to RIIO3@ofgem.gov.uk, clearly setting out your feedback as requested in the Call for Evidence document.