RIIO-2 financial methodology and roles framework for the Electricity System Operator

Decision

In May and August 2019, we made decisions on how we would apply the RIIO-2 framework to the Electricity System Operator (ESO). In August, we also consulted further on two aspects of the ESO’s RIIO-2 price control. Firstly, on the methodology we will use for setting the financial aspects of the price control, and secondly, on potential changes to the ESO’s roles framework and incentives scheme.

This document summarises the responses we received to our August consultation and outlines our decisions and next steps. This includes decisions on the financial methodology and roles framework for the ESO for RIIO-2.

We will set out detailed proposals for all aspects of the price control as part our Draft Determination in summer 2020.