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Date: August 2020 | Client: Ofgem | Sector: Energy | Energy markets | Expertise: Regulation & competition

Advice for GB energy regulator to inform its 2021-2026 price controls

Ofgem has published its RIIO-2 draft determinations for the electricity and gas transmission and gas distribution sectors, and the electricity system operator. CEPA, together with its partners AFRY and ECA, have been supporting Ofgem on a range of financial and economic issues.

CEPA has helped the regulator to assess the business plans that have been submitted to it by the network companies through the provision of regulatory finance and economic advice and input, leading towards Ofgem’s final price control determinations. Our team of energy sector experts has provided technical and qualitative assessment of the robustness of each business plan on a range of issues including:

  • ongoing efficiency;
  • benchmarking and cost assessment;
  • cost of capital and financeability assessment;
  • output delivery incentives; and
  • regulatory framework (including uncertainty mechanism) design.

Ofgem has been consulting on the draft determinations, which are available on the Ofgem website. The deadline for responses is 4 September 2020 and we look forward to continuing our support by helping Ofgem to review the feedback that is provided.

To find out more, please contact our experts listed below.