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RIIO-ED1: Losses Discretionary Reward Decision for tranche three, 2020

In March 2020, we received five submissions for tranche three of the Losses Discretionary Reward (LDR). The LDR aims to encourage DNO groups (DNOs) to undertake additional actions to better understand manage electricity losses on their networks.

The third tranche of the LDR rewards DNOs for specific actions they have undertaken, and concurrent improvements they have made in their understanding of losses following on from tranches one and two. The third tranche also includes an assessment of losses management achievements and preparations for the RIIO-ED2 price control.

The LDR is worth up to £32 million across all DNOs, spread over three tranches during RIIO-ED1. In tranche one, we awarded £3.8 million in total across the six DNO groups. Tranche two was worth up to £10 million; however, no reward was given. Tranche three is worth up to £14m.

This decision document sets out the reasons for our decision on each submission.