Decision on the System Operator: Transmission Owner Optimisation Output Delivery Incentive in RIIO-2
Decision
- Publication date
- Industry sector
- Transmission Network
- Licence type
- Electricity Transmission Licence
We have decided to retain the System Operator: Transmission Owner (SO:TO) Optimisation output delivery incentive (ODI) for the remainder of the RIIO-2 electricity transmission price control. We have made this decision after reviewing the responses to the consultation on our minded-to decision.
The purpose of the SO:TO Optimisation ODI is to encourage the Electricity Transmission Owners to proactively identify and provide enhanced services to the Electricity System Operator (ESO) to help reduce the cost of operating the transmission system.
We consider it is in consumers’ interest for the SO:TO Optimisation ODI to continue to operate in years 3 to 5 of RIIO-2. We have also decided to amend some design parameters of the ODI to further increase the benefits for consumers.
To implement our decisions on the SO:TO incentive set out in this document we will have to modify special condition 4.7 of the electricity transmission licence. We are consulting informally on the draft changes which are set out in appendix 1 of this document. The closing date for responding to the consultation on the draft licence modification is 26 July 2023.