SO:TO Optimisation Governance Document

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We are consulting on the proposed drafts of Associated Documents for the implementation of the RIIO-2 price control. These are documents created under the relevant licence conditions.

We would like your views on our drafts of the SO:TO Optimisation ODI governance document. The proposed drafts set out the regulation, governance and administration of the RIIO-2 SO:TO Optimisation ODI and will take effect from 1 April 2021.

These documents are working drafts and the content is in line with our Final Determinations. We will ensure that all comments received will be appropriately reflected within the final version.

We welcome responses on any aspect of our proposed drafts of the SO:TO Optimisation ODI governance document and in particular your views on the reporting requirements and the methodology for calculating both ex ante and post ex constraint cost savings,  and whether anything else should be included in the documents.

Specifically, we are seeking views on the following:

  1. Do you agree with the reporting requirements set in the governance document for the ETOs and the ESO including the details required, the scope of reporting and timing?   
  2. Do you agree with the methodology of the ESO’s calculation of both the ex-ante and the actual savings in constraint costs?
  3. Is there any additional information that could assist the Authority in assessing the consumer benefit or issues of this ODI?
  4. Do you agree that this SOTO Optimisation ODI Governance Document should continue to be in place during the assessment period to avoid any gap in governance if the Authority were to agree to continue to roll out the incentive for the remainder of the PC?