RIIO-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors
Summary
Ofgem RIIO-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission sectors. Sets the methodology that drives the December 2025 Final Determinations.
Why it matters
The Sector Specific Methodology Decision (SSMD) is the load-bearing methodological document of the RIIO-3 cycle. WACC approach, output incentives, uncertainty mechanisms, capex/opex categorisation are all set here. Final Determinations are a translation of the SSMD into pound numbers.
Areas affected
Related programmes
Memo
RIIO-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors | 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-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors Publication type: Decision Publication date: 18 July 2024 Decision for: RIIO-3 Sector Specific Methodology for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors Print this page Related links RIIO-3 Business Plan Guidance Share the page Share on Facebook Share on Twitter Share on LinkedIn RIIO (Revenues = Incentives + Innovation + Outputs) is our approach to ensuring that the monopoly companies that run our gas and electricity networks have enough revenue to run and invest in a network that delivers efficiently what customers value. On 13 December 2023, we published our consultation on the Sector Specific Methodologies for Electricity Transmission, Gas Transmission and Gas Distribution for the next price control period which runs from 1 April 2026 to 31 March 2031 (RIIO-3). This document sets out our decisions on bespoke policy areas for each of these sectors as well as cross-cutting policies. Further information on decisions for each sector, and on financing, are set out in separate annexes to this document. Network companies will use this information to develop their business plans over the remainder of 2024. Main document RIIO-3 Sector Specific Methodology Decision - Overview [PDF, 827.67KB] Subsidiary documents RIIO-3 Sector Specific Methodology Decision - ET Annex [PDF, 1.05MB] RIIO-3 Sector Specific Methodology Decision - GD Annex [PDF, 740.32KB] RIIO-3 Sector Specific Methodology Decision - GT Annex [PDF, 656.23KB] RIIO-3 Sector Specific Methodology Decision - Finance Annex [PDF, 2.34MB] RIIO-ET3 Economic Lives of Electricity Network Assets (CEPA) [PDF, 682.50KB] RIIO-3 SSMD Allowed Return on Equity Early View Summary Calculations [XLSX, 969.23KB] RIIO-3 SSMD Allowed Return on Debt equity issuance allowance cost savings [XLSX, 56.45KB] RIIO-3 SSMD Allowed Return on Debt future bill impacts [XLSX, 567.81KB] RIIO-3 SSMD Allowed Return on Debt historic bill impact estimates [XLSX, 244.29KB] Print this page Related links RIIO-3 Business Plan Guidance Share the page Share on Facebook Share on Twitter Share on LinkedIn Close