Decision on NESO’s performance incentives framework for BP3
Decision
- Publication date
- Industry sector
- Distribution Network
- Transmission Network
Related links
- Business Plan Guidance for NESO: decision
- Business Plan Guidance for NESO
- Response to statutory consultation on National Energy System Operator licences and other impacted licences
- Decision on Associated Documents to the anticipated NESO licences – regulatory framework documents
- Consultation on the policy direction for the Future System Operator’s regulatory framework
- Business Plan 2 Final Determinations - Electricity System Operator
We plan to introduce changes to National Energy System Operator’s (NESO) regulatory framework in phases. Under this phased approach, we decided on critical changes for Day 1 of NESO on 1 October 2024.
In August 2024, we consulted on changes to NESO’s performance incentives framework for its third Business Plan cycle (BP3). BP3 starts on 1 April 2025 and ends on 31 March 2026.
This will be our second phase of implementing the new NESO regulatory framework. It is also the last Business Plan cycle within the RIIO-2 framework.
Our decisions
The decisions we have made are mainly consistent with the proposals we originally consulted on. These are related to:
- performance incentives
- the business plan and assessment
- cost regulation
- stakeholder and external scrutiny
Next steps
We aim to consult on changes to implement a more longer-term regulatory approach at an appropriate later point prior to the 31 March 2026, when the RIIO-2 price control ends.