Proposal to modify the RIIO-2 Electricity Distribution Price Control Financial Instruments
Summary
Ofgem consults on proposed modifications to the RIIO-2 Electricity Distribution Price Control Financial Instruments (PCFI). Consultation closes 8 June 2026.
Why it matters
Technical update to the financial instruments embedded in the RIIO-ED2 licence conditions. Adjusts how allowed revenue is calculated for the final years of RIIO-ED2 (which runs to March 2028). Mechanical rather than structural; consumer-bill impact depends on the parameter values.
Areas affected
Related programmes
Memo
Proposal to modify the RIIO-2 Electricity Distribution Price Control Financial Instruments | 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: Proposal to modify the RIIO-2 Electricity Distribution Price Control Financial Instruments Publication type: Consultation Publication date: 11 May 2026 Closing date: 08 June 2026 Status: Open Topic: Electricity distribution, Energy network price controls Subtopic: RIIO-ED2: electricity distribution price control 2023 to 2028 Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We are consulting on some minor modifications to the ED2 Price Control Financial Model (PCFM) and the ED2 Price Control Financial Handbook (PCFH). Consultation description We are consulting on proposed modifications to the: RIIO-ED2 Price Control Financial Model (PCFM) RIIO-ED2 Price Control Financial Handbook (PCFH) The modifications to the RIIO ED2 Price Control Financial Instruments we are proposing are: the addition of a new pass‑through term to the ED2 PCFM to enable recovery of costs associated with connections reform the addition of a new paragraph to Chapter 7 (Pensions) of the ED2 PCFH setting out the procedure to be followed where the pensions model calculations indicate an expected surplus These proposed modifications address issues raised through the ED2 Price Control Financial Model Working Group. Who should respond We invite responses from electricity distribution network operators and any other interested stakeholders. How to respond Submit your response by 8 June 2026 by emailing david.simpson@ofgem.gov.uk Consultation documents Proposal to modify the RIIO-2 Electricity Distribution Price Control Financial Instruments [PDF, 179.80KB] Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close Notify me Would you like to be kept up to date with Proposal to modify the RIIO-2 Electricity Distribution Price Control Financial Instruments ? subscribe to notifications: Email Submit Close