Table of Contents
What is Riio Ofgem?
RIIO stands for Revenue=Incentives+Innovation+Outputs. RIIO will ensure that network costs do not rise any more than they need to by financially punishing inefficient companies that fail to deliver for consumers.
What is the Riio model?
RIIO (Revenue = Incentives + Innovation + Outputs) is a performance-based regulatory model created by the UK’s Office of Gas and Electricity Markets (Ofgem). RIIO seeks to reward utilities for innovation and for delivering outputs that meet the changing expectations of consumers and society.
How does Riio ED2 work?
The RIIO-ED2 price control sets the outputs that the 14 electricity Distribution Network Operators (DNOs) need to deliver for their consumers and the associated revenues they are allowed to collect for the five-year period from 1 April 2023 to 31 March 2028.
How does a DNO make money?
How do DNOs and IDNOs generate income? Both DNOs and IDNOs earn revenue from the Distribution Use Of System (DUoS) charges which are included in your energy bill. They apply to every connection to the distribution network; You pay them to your energy supplier and the DNO or IDNO then invoices the energy supplier.
What does Riio ED1 stand for?
Electricity Distribution Price Control Review 1 (RIIO-ED1) The price control review to be applied to the electricity distribution network operators, following DPCR5. This price control will run from 1 April 2015 to 31 March 2023.
What is the difference between DNO and Idno?
DNOs distribute electricity from the transmission grid for a large geographical area, whereas IDNOs distribute electricity from either DNOs, or the transmission network, to smaller local areas. Both DNOs and IDNOs are responsible for connection line faults and maintenance.
How many DNOs are there in the UK?
There are 6 DNO groups in the UK currently, some examples of these are Western Power Distribution (WPD), Northern Power Grid (NPG) and UK Power Networks. Each DNO usually has a monopoly over a certain area in the UK, NPG covers Yorkshire and the North East, for example.
How many Idno are there in the UK?
There are 14 licensed DNOs owned by six different groups that cover specific geographically defined regions of Britain.
Who is the largest DNO in the UK?
National Grid to buy WPD, UK’s largest DNO, and sell majority stake in National Grid Gas | New Power.
Does Ofgem fund National Grid?
National Grid has been granted strategic innovation funding of £1.5m by Ofgem, the energy regulator, for 13 innovation projects that will accelerate Great Britain’s progress towards delivering a net zero energy network at the lowest cost to consumers.