Incentive-Based Regulation (RIIO Model)—Great Britain

Introduction to Great Britain's Incentive-Based Regulation for Transmission and Distribution in the Gas and Electricity Market

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The Office of Gas and Electricity Market (Ofgem) has implemented RIIO (setting Revenue using Incentives to deliver Innovations and Outputs) for the incentive-based regulation (IBR) covering the gas and electricity transmission and distribution network in Great Britain (England, Wales, and Scotland). The RIIO model puts the customer in the middle of the decision-making matrix. Targets are set on primary outputs covering customer satisfaction, safety, reliability, environmental connections, and social obligations. A second-level set of secondary outputs are subsequently incorporated in a detailed business plan to meet the primary output targets. The IBR period (price control period) is set for 8 years, which alig

Table of Contents

Incentive-Based Regulation (RIIO Model)—Great BritainExecutive SummaryExecutive SummaryGreat Britain (GB) vs. the United Kingdom (UK) Great Britain (GB) vs. the United Kingdom (UK)Ofgem—Great Britain’s National Regulatory AuthorityOffice of Gas and Electricity MarketsStanding of Ofgem in EuropeRecent News from OfgemGreat Britain’s Electricity MarketElectricity Market Structure—ComparisonUK Generation Mix (2014)Great Britain—Transmission Operators (TOs) and System Operator (SO)Great Britain—Distribution Network Operators (DNOs)RIIORIIO ModelRIIO HighlightsRIIO StagesOutputs and Price Control Methodology—Principle (Electricity) Outputs and Price Control Methodology—Primary OutputCost Benefit vs. Price Control PeriodsOutputs and Price Control Methodology—RevenueOutputs and Price Control Methodology—Revenue (continued)Outputs and Price Control Methodology—Revenue (continued)Outputs and Price Control Methodology—Revenue (continued)Outputs and Price Control Methodology—Revenue (continued)RIIO—Innovation FrameworkImplementation of RIIO ModelNGET—RIIO TimelineNetwork Performance—Electricity Transmission Under RIIONews RoundupCase Reference—Network OperatorsNetwork Operator Viewpoint—Reference from SSENational Grid Electricity Transmission (NGET)—Primary DeliverableNGET—Output Total Cost ShareNGET—Reliability and AvailabilityNGET—Reliability and Availability (continued)NGET—Reliability and Availability (continued)NGET—InnovationLegal DisclaimerAppendixRetail (End Prices) for Households (2013)The Frost & Sullivan StoryThe Frost & Sullivan StoryValue Proposition: Future of Your Company & CareerGlobal PerspectiveIndustry Convergence360º Research PerspectiveImplementation ExcellenceOur Blue Ocean Strategy

office of gas and electricity (ofgem)
riio model
office of gas and electricity (ofgem)

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