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Ofgem will consult on possible changes to price control this autumn
Ofgem has revealed the timetable for a proposed mid-period review of the RIIO price control for electricity distribution (RIIO ED1).
The regulator will publish a consultation in the autumn outlining potential issues for consideration. The launch date has been moved forward from January 2018 to allow extra time to gather views from stakeholders.
The scope of the review will be limited to modifications to existing outputs prompted by changes in government policy and the introduction of new outputs required to meet the needs of consumers and other networks users.
The first phase of the process will conclude in spring 2018 when Ofgem is set to make a decision on whether or not to initiate a mid-period review.
If Ofgem does decide to proceed, the process will then move to the assessment phase, which will see the regulator work with stakeholders to develop potential modifications. It will publish a consultation on the proposed changes in summer 2018 before issuing a decision on which ones to enact.
The third and final part of the process is the implantation phase, which will take place over the following winter. Ofgem will consult on the amendments to cost allowances and license modifications required to implement the changes. Any alterations to the price control will take effect on 1 April 2019.
The regulator has proposed holding a number of workshops to take in feedback from stakeholders over autumn 2017 and summer 2018, in the latter case depending on whether the review goes ahead. RIIO ED1 began on 1 April 2015 and will run until 31 March 2023.
Earlier this month Ofgem accepted a £54 million rebate from Cadent as part of its mid-period review of the price control for gas distribution (RIIO GD1).
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