RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem
RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem
RIIO-T1 and GD1: Draft licence conditions – First informal ... - Ofgem
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<strong>RIIO</strong>-<strong>T1</strong> <strong>and</strong> <strong>GD1</strong>: <strong>Draft</strong> <strong>licence</strong> <strong>conditions</strong> <strong>–</strong> <strong>First</strong> <strong>informal</strong> <strong>licence</strong> drafting<br />
consultation<br />
Context<br />
The gas <strong>and</strong> electricity transmission price controls (TPCR4) expired on 31 March<br />
2012. We then implemented a one-year adapted rollover of TPCR4 from 1 April 2012<br />
to 31 March 2013. The gas distribution price control review (GDPCR2) reset the<br />
revenue allowances for the Gas Distribution Networks (GDNs) for the period, 1 April<br />
2008 to 31 March 2013. The next transmission (<strong>RIIO</strong>-<strong>T1</strong>) <strong>and</strong> gas distribution (<strong>RIIO</strong>-<br />
<strong>GD1</strong>) price controls will reflect the new <strong>RIIO</strong> (Revenue = Incentives + Innovation +<br />
Outputs) model for regulation <strong>and</strong> are due to apply from 1 April 2013 to 31 March<br />
2021.<br />
The business plans submitted by SP Transmission Ltd (SPTL) <strong>and</strong> Scottish Hydro<br />
Electric Transmission Ltd (SHETL) were suitable for fast-tracking <strong>and</strong> we have<br />
published Final Proposals 1 (FP Documents) for those companies. The business plans<br />
submitted by National Grid Electricity Transmission (NGET) <strong>and</strong> National Grid Gas,<br />
with respect to its gas transmission business (NGGT) were not considered suitable<br />
for fast-tracking. Initial Proposals for NGET <strong>and</strong> NGGT 2 (<strong>T1</strong> IP Documents) have<br />
been published alongside this document. We intend to publish Final Proposals in<br />
December 2012.<br />
In November 2011, the Gas Distribution Networks (GDNs) submitted their first<br />
business plans, <strong>and</strong> on 17 February 2012 we published our initial assessment of<br />
those plans 3 . We decided not to fast-track any of the GDNs, therefore as with NGGT<br />
<strong>and</strong> NGET, Initial Proposals for the GDNs 4 (<strong>GD1</strong> IP Documents) have also been<br />
published alongside this document with Final Proposals to be published in December<br />
2012.<br />
Timetable for <strong>RIIO</strong>- <strong>T1</strong> <strong>and</strong> <strong>GD1</strong> <strong>licence</strong> development <strong>and</strong> implementation<br />
Stage Date<br />
Second <strong>informal</strong> <strong>licence</strong> drafting consultation<br />
(4 weeks)<br />
Autumn 2012<br />
Final Proposals 5 <strong>and</strong> 28 day statutory <strong>licence</strong><br />
modification consultation <strong>and</strong> notices published<br />
December 2012<br />
Licence modification decision <strong>and</strong> modifications<br />
published<br />
January 2013<br />
Licence changes come into effect April 2013<br />
1 <strong>RIIO</strong>-<strong>T1</strong>: Final Proposals for SP Transmission Ltd <strong>and</strong> Scottish Hydro Electric Transmission Ltd<br />
http://www.ofgem.gov.uk/Networks/Trans/PriceControls/<strong>RIIO</strong><strong>T1</strong>/ConRes/Documents1/SPTSHETLFPsuppor<br />
t.pdf.<br />
2 <strong>RIIO</strong>-<strong>T1</strong>: Initial Proposals for NGGT <strong>and</strong> NGET - Overview<br />
3 Initial Assessment of <strong>RIIO</strong>-<strong>GD1</strong> business plans <strong>and</strong> proportionate treatment<br />
http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=352&refer=Networks/GasDistr/<strong>RIIO</strong> -<br />
<strong>GD1</strong>/ConRes<br />
4 <strong>RIIO</strong>-<strong>GD1</strong>: Initial Proposals - Overview<br />
5 For NGET, NGGT <strong>and</strong> the GDNs