Faraday Grid’s response submission to OFGEM’s RIIO-2 Consultation

The Office of Gas and Electricity Markets (OFGEM), Great Britain’s regulator for the electricity and downstream natural gas markets introduced the RIIO-2 consultations to gather expert viewpoint on how the networks can deliver the services that consumers will require in the future.

The RIIO-2 project (Revenues = Incentives + Innovation + Outputs) will inform on the next 8-year period of price controls for the network companies running the gas and electricity transmission and distribution networks. 

“RIIO is designed to encourage network companies to:

  • Put stakeholders at the heart of their decision-making process.
  • Invest efficiently to ensure continued safe and reliable services.
  • Innovate to reduce network costs for current and future consumers.
  • Play a full role in delivering a low carbon economy and wider environmental objectives.” [1]

The action points declared by OFGEM echo the Faraday Grid’s mission of enabling highly efficient, flexible network systems, which ultimately deliver electricity with maximal reliability and stability, integrate the highest levels of renewable energy while reducing costs.

In their response, Faraday Grid urges the incentivisation of fundamental network-wide solutions as opposed to seeking out incremental mitigating technologies providing only temporary relief from network-wide pressures. Read the Faraday Grid’s response here as submitted on 1 May to OFGEM.  

[1] https://www.ofgem.gov.uk/network-regulation-riio-model/network-price-controls-2021-riio-2/what-riio-2-price-control