The RIIO-ED1 price control runs from 1 April 2015 to 31 March 2023. Within RIIO-ED1 there are a number of cost areas that require specific mechanisms to account for their uncertain nature. This means that some areas of the price control will need to be settled (“closed out”) once the price control has ended. The decision on the methodologies for RIIO-ED1 closeout, published in December 2019, sets out the closeout methodologies for six elements of the price control.
In our October 2019 RIIO ED1 reopener decision for SSWC, we indicated that we would establish a closeout process for electricity distribution licensees to submit applications for any efficiently incurred SSWC that were not funded through that reopener or as part of ex ante allowances.
In this consultation, we are proposing a methodology to closeout the SSWC element of RIIO-ED1. We welcome views from stakeholders on our suggested approach outlined in this consultation, by 10 August 2020. The final versions of this methodology will be included in the RIIO-ED2 Financial Handbook.