Our Performance and Price Control

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Keep up-to-date with our latest news.

April 2016

We have now published the results from our stakeholder consultation 'Have Your Say' that closed January 2016.  We were delighted with the number of responses that we received and the feedback that was provided.  The feedback has identified some key areas for us to focus on for 2016/17. Thanks to all those that took part.  We will be providing an update on our progress in November.

Stakeholder consultation results

 

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National Grid Gas Distribution
Talking Networks

Our Performance and Price Control

July 2016

Our performance for 2015/16

As part of our 2015/16 commitments to our Stakeholders, we agreed to continue to share our RIIO performance annually with Stakeholders. We are pleased to publish our third year of RIIO performance in a fresh new format based on your feedback.

There are 3 levels of detail including;

1. Using the success of digital formats across our areas of work we have produced an animated video to provide an overview of our performance and the service we provide to you.

Click here to view our animation

2. If you would like to understand our performance in more detail, please see our booklet containing a full scorecard showing performance across our four networks. Within this booklet you can also see infographics showing how our costs contribute to your overall gas bill and the service you receive from us in return for this cost.

Click here to view the booklet.

3. Finally, for further detailed information on our 2015/16 performance, please read National Grid Gas Distribution Regulatory Reporting Supporting Narrative and data tables.

As we did last year, to make it much easier to our RIIO performance materials, we have included a banner on our UK homepage linking to the materials www.nationalgrid.com/uk

To learn more about how we are improving our customer experience in both our planned work and connections, please see our Stakeholder Engagement Incentive Submission

September 2015

Our performance for 2014/15

Our second performance booklet

For more details on our stakeholder commitments please read our Committing to you for 2015.

Our performance for 2014-15 (Interactive)  

Our performance for 2014-15 (Printable pdf)

One page leaflets for each network show the breakdown of our costs as part of your customer bill, combined with key output performance for the year 2014/15.

For further detailed information on our 2014/15 performance please read:

National Grid Gas Distribution full Regulatory Reporting Supporting Narrative and data tables

 

September 2014

Our performance for 2013/14

Our first performance booklet under the RIIO price control Our performance for 2013-14 (on-line interactive version)

For more details on our previous stakeholder commitments please read Committing to you for 2014.

For further detailed information on our 2013/14 performance please read:

National Grid Gas Distribution full Regulatory Reporting Supporting Narrative and data tables

 

 

 

What is price control and RIIO?

The Office of the Gas and Electricity Markets (Ofgem) is the government regulator responsible for deciding how much capital and revenue funding will be given to the eight regional gas distribution networks; this is set over a specified time frame.

Historically the PCR was over a five year period and based on a retail price index model with an element of incentivised efficiency savings (RPI-X). This has served the customer well and has delivered reduced network costs for customers since privatisation in 1990.

With significant energy challenges in mind, Ofgem has introduced a new regulatory framework to replace RPI-X known a RIIO and is over a eight year period from April 2013 to 2021.

Revenue= Incentives + Innovation + Outputs

The RIIO model offers energy companies real incentives for securing investment and driving innovation. This is to ensure the delivery of sustainable energy networks for current and future customers at the lowest cost.

Ofgem’s RIIO outputs included -

1. Safety
2. Reliability
3. Environmental Impact
4. Customer Satisfaction
5. Connection Terms
6. Social Obligations

National Grid’s Gas Distribution business developed a further output -

7. Helping the Industry Work Better

Following stakeholder feedback these outputs have now been mapped to five key priorities –

  • We will keep you safe
  • We will be reliable
  • We will safeguard future generations
  • We will deliver a quality service to all
  • We will provide value for money

What are the differences between this Price Control and previous ones?

  • The Price Control has historically covered a period of five years, this time it is eight
  • Although National Grid Gas Distribution already undertakes year round stakeholder engagement, all Distribution companies must now seek views in order to shape their business plans
  • It encourages more sustainable network development
  • There will be a mid term review after four years
  • It incentivises innovation in new technology and working practices
  • It focuses more than ever before on value for money

 

How did we perform in the last price control 

Our last price control, known as GDPCR1, ran from 2008/9-2012/13.  How we performed is detailed here

 

FAQs

If you would like to ask us a question that is not covered here then please contact us at talkingnetworks.distribution@uk.ngrid.com.

1. Why is National Grid Gas Distribution Regulated?

National Grid Gas Distribution is a monopoly, and like other utilities we are regulated.  Ofgem is our regulator, and oversees our business activities.  Through regulation, monopolies are incentivised to work efficiently and ensure the market is not distorted.

2. What is the Price Control Review (PCR)?

Ofgem is responsible for deciding how much capital and revenue funding is allocated to us.  This is set for a specific period of time.  The current distribution Price Control Review period expires on 31 March 2013.

The next PCR which is the one we are consulting on is from 2013 to 2021.  This will run in parallel with the Gas Transmission Price Control Review which you may also wish to feed in to.

3. What has happened in the previous Distribution PCRs?

Historically the PCR was over a five year period.  It was based on a retail price index model with an element of incentivised efficiency savings (RPI-X).  This has served the customer well and has delivered reduced network costs for customers since privatisation in 1990.

4. What is RIIO?

Ofgem has introduced a new regulatory framework to replace RPI-X.  This is known as RIIO  Revenue= Incentives + Innovation + Outputs

The RIIO model offers energy companies real incentives for securing investment and driving innovation.  This is to ensure the delivery of sustainable energy networks for current and future customers at the lowest cost.  

5. What are the differences between this PCR and previous ones?

The PCR has historically been over a period of five years, but under RIIO it will be eight.  National Grid carries out year round stakeholder engagement, but this is the first time we are undertaking PCR specific activities which will shape the business plans.

Because of the length of the price control there will be a mid-term review after four years to monitor our progress and incentives for developing new technology and working practices.  All of these activities will be underpinned by a focus on value for money for customers.

6. What does it mean for me?

National Grid wants to hear your views about how we safely and reliably maintain and adapt our distribution networks in order to address consumers' current and future needs.  We want to know how you would prioritise resources, what you consider most important and what the future of energy should look like. 

7. What will the money be spent on?

A major part of our engagement activities will include discussions around how we best allocate our resources and understand what our stakeholders most value and hope to stimulate a wide ranging debate.

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