11/29/2019 | Press release | Distributed by Public on 11/29/2019 04:19
Ofgem has today published the results of the 2019 Annual Iteration Process (AIP) for energy network companies under its network price controls.
As part of the 'Revenue = Incentives + Innovation + Outputs' (RIIO) price controls for network companies, we make annual adjustments to the revenue that we allow the energy network companies to collect through the AIP.
The AIP updates base revenues across Ofgem's four price controls (electricity distribution, gas distribution, electricity transmission, and gas transmission) for the next regulatory year (2020/21).
This year's AIP has reduced the allowed revenue that network companies will collect relative to the assumptions made at the start of the price controls by around £965 million (2018/19 Prices), saving consumers money on their bills. This reduction is driven by the following factors:
We have published updated price control financial models (PCFMs) for the four price controls, here: