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Ofgem's RPI-X@20; next stop RIIO
Datamonitor, Aug 2010, Pages: 14
Ofgem's existing regulatory model, now 20 years old, was devised with the goals of driving economic efficiency and ensuring network reliability. In July 2010, Ofgem published its proposed new network regulation methodology RIIO, an outcome of its RPI-X@20 review. The proposal will have a wide-ranging impact on the future of the UK's energy networks, meriting close analysis by all stakeholders.
Scope
- An overview of Ofgem's existing network regulation model in the context of its historical circumstances and evolution
- An assessment of the growing challenges and critiques that the current network regulation model RPI-X is facing
- A guide to the proposed new regulatory framework RIIO outlining its key risks and benefits for investors, network companies, and consumers
- An analysis of the potential impacts on infrastructure investment and regulatory models elsewhere
Highlights of this title
Given the infrastructure challenges of the 21st century it is now essential for Ofgem to evolve its network pricing model to address the growing need to decarbonize the UK economy. To assist this goal Ofgem's new proposed model encompasses a longer-term approach toward financing and managing energy networks than the regulator's current model.
RIIO will enable network companies to benefit financially from a list of incentives for over-performing on a broad range of outcomes, and aims to distribute the costs of obtaining networks fit for purpose more equitably between current and future consumers. In particular, the role of third party engagement is strengthened.
The proposed network has the potential to become an international example of forward-looking regulation designed to attract the investments required to meet a range of goals. While costs for consumers are ultimately going to increase, maintaining the status quo is not an option.
Key reasons to purchase this title
- Understand Ofgem's new regulatory proposals and why the changes are absolutely vital to attract investment and improve innovation across the networks
- Develop your opinion on the likely changes facing your utility including the potentials for business opportunities and associated risks
- Formulate arguments for lobbying and campaigning
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