RIIO-2 Business Plans Initial Guidance Document



Ofgem have published this Initial Guidance Document to give network companies and their stakeholders an indication of the information they are likely to need to set a price control, and to establish consistency to allow them, and stakeholders, to assess plans on a comparable basis.

This document provides insight on Ofgem’s initial thinking on the following aspects of business plans:

  • Approach to setting outputs and incentives

  • Approach to cost assessment

  • Consistent views of the future

  • Use of uncertainty mechanisms

  • Inflation

  • Anticipatory investment

  • Innovation

  • Whole systems

It also provides information on forthcoming workshops which will inform an update of this guidance alongside their December Methodology Consultation.

https://www.ofgem.gov.uk/publications-and-updates/riio-2-business-plans-initial-guidance-document

Case Studies

South West Water
Thames Water
Irish Water