Sia Partners UK Energy & Utilities Series: The RIIO-2 Framework
RIIO-2 is the second iteration of Ofgem’s RIIO (Revenue = Incentives + Innovation + Outputs) price control for network companies.
On the 7th of March 2018, Ofgem released their RIIO-2 Framework Review. From the document, it is clear that Ofgem intends to challenge network companies across all aspects of the price control, in an attempt to ensure returns are justifiable under the current political pressure on energy prices. Read on below to hear about Sia Partners’ view on Ofgem’s intentions, and what we think Network Companies should focus on to be successful under the new price control.