Triennially we carry out a review of RIIO network companies’ pension scheme established deficits, which consumers fund through their energy bills. The companies, as part of their revenue, currently receive annually £534 million in allowances. Our review looks at the latest valuations and the governance arrangements the companies have in place.
Today we complete the 2020 pension reasonableness review. This confirms the revised RIIO network companies’ pension allowances and our recommendations to the companies for changes they may want to adopt before the next reasonableness review in 2023. The revised allowances will reduce revenue, across all companies, over the next three years by an annual average of £212 million.