RIIO‑3 interim Regulatory Reporting Packs (RRP) and Price Control Financial Model (PCFM) guidance for electricity transmission, gas transmission and gas distribution

Here's the briefing memo.

What this is about

Ofgem is consulting on interim Regulatory Reporting Packs and the accompanying Price Control Financial Model guidance for the three networks now sitting under RIIO-3 price controls: electricity transmission, gas transmission and gas distribution. The interim packs contain only the revenue sheets, the part of the reporting framework that feeds the Annual Iteration Process. The full RRPs, covering the wider set of reporting requirements, will follow and absorb these interim packs in time for the submission due in July 2027, which relates to the 2026-27 reporting year.

The timing is mechanical. RIIO-ET3, GD3 and GT3 final determinations have already fixed the allowed revenue for each network. The Annual Iteration Process is the once-a-year run of the PCFM that updates allowed revenue for the values that were left to be trued up after the determination: inflation indexation, cost of debt, certain pass-through and reopener items, and timing adjustments. To run that process this year, networks need a settled revenue pack and PCFM guidance to file against. Rather than wait for the complete reporting framework, Ofgem is issuing the revenue sheets on their own so the AIP can proceed on schedule. Nothing here sets a new allowance or changes a charge. It is the reporting and modelling plumbing around a revenue stack that was decided in the determinations.

Options on the table

Interim revenue-only RRPs, full packs later

Ofgem proposes issuing interim Regulatory Reporting Packs that contain only the revenue sheets for ET, GT and GD, for use in this year's Annual Iteration Process, with the full RRPs following in time for the July 2027 submission covering 2026-27. The practical effect is sequencing: the revenue calculations get a finalised pack and guidance now, so the AIP is not held up while the broader reporting requirements (cost reporting, output reporting, the wider regulatory instructions and guidance) are still being completed.

The consultation does not present a competing option in the documents, so this is a yes/no on the approach rather than a choice between designs. The trade-off is straightforward. Splitting the pack lets the AIP run on time, which matters because the AIP output drives the allowed revenue that networks recover through charges in the next charging year; a delayed iteration would push back revenue certainty for licensees and the charge-setting that follows. The cost is that licensees work from a partial pack and then re-file the same revenue data inside the full RRP for 2027, with the risk that the interim and full versions need to be reconciled if anything in the surrounding framework shifts. For the networks that file it, that is a modest amount of duplicated effort against the benefit of keeping the iteration on schedule. No party outside the licensees is materially affected, because the numbers being reported were already fixed in the final determinations.

Questions being asked

Interim RRP and PCFM guidance

- Are the proposed interim Regulatory Reporting Packs (the revenue sheets) for ET, GT and GD fit for use in this year's Annual Iteration Process? *(In substance: do the revenue sheets contain the right inputs, formulae and structure to run the AIP correctly, given they are being issued ahead of the full reporting framework.)* - Is the draft PCFM guidance for ET3, GD3 and GT3 clear and complete enough for licensees to apply? *(Whether a network can take the guidance and the financial model and produce a defensible iteration without needing to go back to Ofgem for interpretation.)*

The respondent set is narrow. Ofgem is explicitly looking for responses from network companies, the licensees who have to file against these packs. There is little here for anyone else to engage with, which is consistent with the document being reporting machinery rather than policy: the substance was settled in the determinations, and what remains is whether the people who operate the model can operate it cleanly.

How to respond

Deadline: 23 June 2026 (the consultation opened 26 May 2026).

How: By email to alaba.kolajo@ofgem.gov.uk.

Documents: The consultation cover note, the three draft PCFM guidance documents (ET3, GD3, GT3) and the three draft revenue packs (RIIO-ET3, GD3, GT3 in XLSX) are attached to the consultation page. Ofgem notes some attached files are not fully accessible; alternative formats can be requested from the same contact.

Who should respond: Network companies. Ofgem is not seeking input beyond the licensees who file the packs.