Our RIIO-2 business plan

Ofgem announced its final determinations of our Electricity Transmission business plan for the RIIO-2 regulatory period covering 2021 to 2026. Ofgem’s regulatory framework is known as RIIO (Revenue = Incentives + Innovation + Outputs). The RIIO model offers network companies incentives for innovation and securing investment, so they can develop sustainable energy networks at the lowest cost for current and future customers.

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Final determinations

Ofgem published their final determinations on Tuesday 8 December 2020. We will be studying Ofgem's final determinations package very carefully - it covers a broad range of issues for our business.

Read our statement
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Our RIIO-2 business plan (2021-2026)

We developed our business plan against a background of rapid change in the energy industry.

Our business plan

Our Performance Summary

We publish a summary of our performance so that we can explain how we have performed to our customers, stakeholders and end-consumers. We hope that you find it useful and we welcome your feedback on how we can improve our report in the future.

Download Our Performance Summary


Regulatory Financial Performance Reporting (RFPR)

This is our Regulatory Financial Performance Reporting (RFPR) submission to Ofgem. RFPR contains our financial performance for 21/22 under the RIIO framework. RFPR enables Ofgem to administer the licence conditions that relate to the price control. This includes monitoring the performance of licensees against Final Determinations, monitoring compliance with price control obligations and reviewing performance between price controls.

Download the RFPR narrative

Download the RFPR pack

 


SO:TO Optimisation Output Delivery Incentive

In the first year of RIIO T2, we delivered our RIIO-T2 commitment to provide enhanced services through the trial SO:TO Output Delivery Incentive, resulting in over £39.4m reduction in transmission system constraint costs.

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Substation Civils Infrastructure Reopener 

This submission outlines required RIIO-T2 expenditure of £58.07m in addition to initial funding of £25.45m previously granted. This funding will enable us to maintain the reliability of civil infrastructure at 186 sites across the Main Interconnected Transmission System.

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    Non-Operational IT Capex reopener

    NGET’s redacted submission to the April 2021 Non-Operational IT Capex re-opener. This includes the main submission documents and supporting Annexes. 

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    Lister Drive Customer Connection

    This submission requests additional funding to provide a connection for Statkraft UK connecting to NGET’s Lister Drive 275kV substation following the output from National Grid Electricity System Operator Stability Pathfinder process that will allow Stakkraft to provide ancillary services to reduce constraint cost.

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     Frodsham 400kV Customer Connection

    This submission requests additional funding to provide a connection for Mersey Reactive Power connecting to NGET’s Frodsham 400kV substation following the output from National Grid Electricity System Operator High Voltage Pathfinder process that will allow Mersey Reactive Power to provide ancillary services.

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    Cellarhead Customer Connection

    This submission requests additional allowance to provide a 132kV connection at Cellarhead Grid Supply Point (GSP) in Staffordshire. The connection is to accommodate a feeder circuit connection between Whitfield Bulk Supply Point (BSP) and Cellarhead GSP being installed by Western Power Distribution (WPD), this will allow WPD to continue to operate a compliant network.

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    Melksham Operational Tripping Scheme (OTS) Phase 2

    This submission requests additional allowance to extend the existing the Melksham Operational Tripping Scheme, this is driven by a range of future Generation Customers connecting into the South West region of England, These additional connections to the Transmission System would result in thermal, voltage and stability issues when particular double circuit unplanned outages occur during certain planned outages.

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    National electricity infrastructure protection from extreme weather  

    National Grid is seeking funding to deliver 33 additional weather protection projects in years 2 and 3 of RIIO-T2. This investment will protect assets and sites most at risk from surface water flooding, which has increased due to climate change. An additional reopener is also expected in 2023 to cover the remaining sites which require protection during RIIO-T2. 

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    SF6 Asset Investment to prevent carbon emissions

    National Grid requires funding within this regulatory period (T2), to deliver interventions at electricity infrastructure sites that already have or are predicted to have significant SF6 leakage. SF6 gas is used as an insulating medium used in electricity network assets and is 23,500 times more potent than Carbon Dioxide as a greenhouse gas. This investment is forecast to prevent 500,000 tonnes of carbon emissions until 2030, which is the equivalent of planting more than 8 million trees.

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    RIIO-2 Statutory Licence Consultation

    We responded to Ofgem’s RIIO-2 Statutory Licence Consultation. This response was on behalf of National Grid Electricity Transmission plc (NGET) and National Grid Gas plc (NGGT). You can read the following response documentation:

    Executive Summary

    Download the following Annexes

    • Annex Chapter 1-9 of the Special Conditions
    • Annex Special Conditions being removed
    • Annex Standard and Special Conditions being modified
    • Annex PCFH
    • Annex PCFM.

    National Grid Electricity Transmission Independent User Group

    We are the Independent User Group responsible for scrutinising National Grid’s RIIO 2 business plan and challenging how they engage with stakeholders. As the Independent User Group, we represent a cross-section of the energy industry and beyond, bringing our individual expertise and experience across a broad range of energy issues.

    National Grid Electricity Transmission Independent User Group


    RIIO-2 Stakeholder Engagement

    We are working to improve our stakeholder engagement – and that is why we place community relations at the heart of our infrastructure projects.  

    Read stakeholder engagement case studies


    Redaction Explanatory Statement 

    Document published in accordance with the RIIO-2 Re-Opener Guidance and Application Requirements Document.
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