Consultation on the methodologies for RIIO-ED1 closeout

The RIIO-ED1 price control runs from 1 April 2015 to 31 March 2023. Within RIIO-ED1 there are a number of cost areas that require specific mechanisms to account for their uncertain nature. As a result of these mechanisms, some areas of the price control need to be settled (“closed out”) once the price control has ended.

We are proposing methodologies to closeout six elements of RIIO-ED1:

  •  Load Related Expenditure;
  •  Net contributions from customers towards gross reinforcement costs, known as Net to Gross;
  •  Network Output Measures/Network Asset Secondary Deliverables;
  •  High Value Projects (HVP);
  •  Expenditure associated with Link Box Replacement Volumes; and
  •  Expenditure associated with Shetland Extension Fixed Energy Costs, Shetland Extension Battery Costs, and Shetland Enduring Solution Process Costs.

We welcome views from stakeholders on our suggested approach outlined in the consultation, by 1 May 2019. The final versions of these methodologies will be included in the RIIO-ED2 Financial Handbook.

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