Gas outputs and incentives: Briefing 4 in CEPA's key questions for RIIO-GD2 and T2 series

Home > News Archive > Gas outputs and incentives: Briefing 4 in CEPA's key questions for RIIO-GD2 and T2 series
26th July 2017
Outputs are a central part of Ofgem’s regulatory framework for the gas distribution sector under RIIO. At RIIO-GD1, Ofgem implemented incentives that aim to encourage efficient delivery of a range of outputs. Some incentives include rewards or penalties beyond gas distribution networks’ (GDNs) base revenue allowance. We expect Ofgem to retain an outputs delivery framework at RIIO-GD2, with the potential for outstanding performance to achieve double-digit investor returns.

Download CEPA's briefing: Gas outputs and incentives

By:
Patrick Taylor
Patrick Taylor
, a director and an experienced energy economist advising regulators and utility companies on regulatory regimes and network charging. He is an expert in developing output and incentive schemes.

Tom Cochrane
Tom Cochrane, a managing consultant with over ten years’ experience in economic regulation and price controls. His regulatory work focuses on the energy sector. He has led projects covering all aspects of the regulatory regime, including incentive schemes.