NESOOFGEMDESNZ
feed

RIIO-ED2 Network Innovation Allowance (NIA) funding for years 2026 to 27 and 2027 to 28

OFGEM·consultation·MEDIUM·18 Aug 2025·source document

Summary

Ofgem consultation on RIIO-ED2 Network Innovation Allowance (NIA) funding for the years 2026-27 and 2027-28.

Why it matters

Operative NIA funding for the final two years of RIIO-ED2. Companion to the December 2025 RIIO-ED2 NIA top-up decision. Allowance level determines how much innovation work DNOs can fund in the closing years of the price control.

Areas affected

distribution

Related programmes

RIIO-ED2
Memo

RIIO-ED2 Network Innovation Allowance (NIA) funding for years 2026 to 27 and 2027 to 28 | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: RIIO-ED2 Network Innovation Allowance (NIA) funding for years 2026 to 27 and 2027 to 28 Publication type: Decision Publication date: 18 August 2025 Topic: Electricity distribution, Energy network price controls, Innovation Subtopic: Electricity distribution price control 2023 to 2028 (RIIO-ED2) Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn This document confirms our decision to proceed with a detailed assessment before providing additional funding through the Network Innovation Allowance (NIA) to Distribution Network Operators (DNOs) for the final 2 years of RIIO-ED2. We initially provided NIA funding for the first 3 years of RIIO-ED2 and our minded-to position was to provide the same amount of funding on a pro rata basis for the final 2 years of RIIO-ED2. Responses to our consultation did not provide the evidence needed to support our minded-to position. We have decided instead that a detailed assessment is needed to determine which DNOs require further funding for the final two years of RIIO-ED2, and how much. The document outlines our consultation position, the responses received, our assessment of those responses, and our final decision. Consultation responses can be found before the decision document, providing further context on the considerations that shaped our final position. Non-confidential responses are published alongside this decision. Main document Decision for RIIO-ED2 Network Innovation Allowance (NIA) funding for years 2026-27 and 2027-28 [PDF, 209.41KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close