Notice of proposed modifications to the Regulatory Financial Performance Reporting template and guidance for RIIO-2 (2026)

What this is about

Ofgem updates the RIIO-2 Regulatory Financial Performance Reporting (RFPR) template and guidance every year before network companies file their annual returns. This consultation proposes version 4.1 of the template and Regulatory Instructions and Guidance (RIGs), covering the 2025/26 reporting year for all gas and electricity transmission and distribution licensees.

The changes are mechanical: updated input data, refreshed parameters, and clarifications to guidance text. This is not a redesign of what networks must disclose or how their allowed revenues are calculated. It is the annual maintenance cycle for the reporting framework that Ofgem uses to monitor how network companies are performing against their RIIO-2 price control settlements. The tracked-changes version of the RIGs document (721KB PDF) shows exactly what moved.

RFPR is the instrument through which Ofgem sees whether network companies are spending what they said they would spend, earning what they were allowed to earn, and delivering what they committed to deliver. The template matters to network finance teams because it defines the format and granularity of the data they must submit. It matters less to everyone else because it does not change the underlying regulatory bargain — it changes the spreadsheet.

Options on the table

#### Proposed RFPR v4.1 updates

Ofgem proposes adopting version 4.1 of the RIIO-2 RFPR template and associated Regulatory Instructions and Guidance. Network licensees would file their 2025/26 returns using the updated template. The underlying reporting obligation does not change — this is the same data, in a refreshed format, with updated parameters reflecting the current reporting year.

The consultation documents include the full v4.1 template (12MB Excel workbook) and a tracked-changes version of the RIGs so respondents can see precisely what has been amended. The changes are described as "general updates to guidance, input data and parameters," which in Ofgem's reporting vocabulary means recalibrated indexation figures, corrected cross-references, and clarified instructions where previous versions caused filing errors or inconsistent submissions.

There are no alternative options presented. This is a notice of proposed modifications under the standard licence modification process — Ofgem is telling licensees what it intends to change and giving them the statutory window to object. The realistic outcome is that v4.1 is adopted as proposed, possibly with minor corrections if a licensee identifies an error in the template.

Winners: Ofgem's data quality improves incrementally. Licensees get clearer guidance on ambiguous cells in the workbook, reducing the back-and-forth that follows annual submissions.

Losers: Nobody materially. The compliance cost is absorbed within existing regulatory reporting teams. This is a cost of holding a network licence, not a new burden.

How to respond

Deadline: 12 May 2026

Method: Email submission to Stephanie.Fernandes@ofgem.gov.uk

Who should respond: Network companies (gas and electricity transmission and distribution licensees). Ofgem is explicitly seeking responses from licensees, not the broader industry. Third parties can respond but this is a technical reporting consultation with no policy content that would warrant wider engagement.

Documents to review: - Notice proposing modifications to the RIIO-2 RFPR 2025-26 (PDF, 194KB) - RIIO-2 RFPR Regulatory Instructions and Guidance v4.1, tracked changes (PDF, 722KB) - RIIO-2 RFPR template v4.1 (XLSX, 12.3MB)