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Views sought on framework for future electricity network price controls

On Friday 10 March, Ofgem published a consultation on the overarching framework for the network price controls that will replace the RIIO-2 and Distribution Network Operator (DNO) price controls in March 2026 and 2028 respectively. The regulator is seeking to understand the scale of change from the current price control frameworks is required to overcome the challenges facing electricity networks in facilitating the UK’s Net Zero aims. Three archetypes for future network regulation are outlined – Plan and Deliver, Ex-ante Incentive and Freedom and Accountability all of which giving different approaches with different focuses. In addition, Ofgem sets out its example models for optimal regulatory mechanisms going forward as well as its proposed analytical approach for the consideration of stakeholders. Responses are requested by the 19 May 2023.

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