People are on the pitch, they think it’s all over…
You will have seen from recent communications that we have now submitted the RIIO-2 business plans for the ET and GT businesses to Ofgem. This marks an important milestone in securing a second RIIO deal covering the period 2021-2026. But did you know that we are only two thirds of the way there? We’ve got a busy year ahead of us in 2020 where our business plan proposals are scrutinised and converted into a price control settlement that needs to work for all involved.
So what happens next?
Thanks to the efforts of many across the business, we have put our best foot forward through our business plan submissions and I’d like to thank those of you that have been supporting the price control team in Regulation in achieving this.
Our plans have been ratified by the Independent User Groups that have been overseeing, scrutinising and challenging our engagement and plans over the past 18 months. The Groups have just submitted their reports and challenge logs on our business plan proposals to Ofgem.
You can read the reports and logs by visiting the RIIO-2 Gas Transmission page and the RIIO-2 Electricity Transmission page. We are also expecting the Ofgem appointed ‘RIIO2 Challenge Group’ to publish its report on the RIIO2 business plans for all networks on 17 January.
Ofgem has already begun to review our business plans and assess all aspects of our proposals for need, efficiency and value for consumers. In early 2020 we will receive formal questions from Ofgem which we will need to answer in short order – between two and five days – so the Regulation team will continue to need your support to give quality and well evidenced answers to their questions.
We will also participate in open hearings on 1 April (no it’s not an April Fool) in front of a ‘select committee style’ panel, which includes members of the Gas and Electricity Markets Authority – this is the Board of Ofgem that ultimately decides our price control settlement. The hearing will be public and will give the opportunity for any stakeholder to raise issues or questions about our plans. This is a new feature of the RIIO2 price control process for all networks and so we will be preparing our representatives with Nicola at the helm during Q1 next year.
Ofgem will then be publishing its initial proposals in July. This is a consultation process and is also the first time we will see what Ofgem thinks our whole price control package should look like. We will consider and respond over the summer and Ofgem will publish its final proposals in late November.
So 2020 will be a huge year in bringing all the different aspects of RIIO-2 together into a price control settlement that works for all and provides the framework within which we will operate our business for the next five years. We have to continue to work with stakeholders and Ofgem to ensure we are appropriately funded and incentivised to deliver our critical service for the UK; and make great strides in decarbonising the energy system on route to net zero by 2050.
So I really do hope it will be a Happy New Year!
Project Director, RIIO-T2