Research and Markets (http://www.researchandmarkets.com/research/lxvj4h/incentivebased) has announced the addition of the "Incentive-Based Regulation (RIIO Model)Great Britain" report to their offering.

The Office of Gas and Electricity Market (Ofgem) has implemented RIIO (setting Revenue using Incentives to deliver Innovations and Outputs) for the incentive-based regulation (IBR) covering the gas and electricity transmission and distribution network in Great Britain (England, Wales, and Scotland). The RIIO model puts the customer in the middle of the decision-making matrix. Targets are set on primary outputs covering customer satisfaction, safety, reliability, environmental connections, and social obligations. A second-level set of secondary outputs are subsequently incorporated in a detailed business plan to meet the primary output targets. The IBR period (price control period) is set for 8 years, which aligns with asset investment decisions better than the 5-year period. Wider industry participation is supported using innovation funds controlled by Ofgem.

Summary

- The Office of Gas and Electricity Markets (Ofgem) regulates the transmission and distribution networks for gas and electricity in Great Britain (England, Wales, and Scotland).

- The price control regulation is referred to as RIIO and is similar in concept to the Incentive-Based Regulation (IBR) in Peninsular Malaysia.

- The price control is applied through an output-driven model that covers primary outputs as required by stakeholders (customers, regulators, etc.) and secondary outputs, which enable the targets.

- Network companies submit an 8-year business plan for meeting the primary output targets and also cover the secondary outputs, which enable the primary targets.

- The RIIO price control also enables innovation fund development through a share from the revenue of the network companies.

Key Topics Covered:

1. Executive Summary

2. Great Britain (GB) vs. the United Kingdom (UK)

3. Ofgem - Great Britain's National Regulatory Authority

- Office of Gas and Electricity Markets

- Standing of Ofgem in Europe

- Recent News from Ofgem

4. Great Britain's Electricity Market

- Electricity Market Structure - Comparison

- UK Generation Mix (2014)

- Great Britain - Transmission Operators (TOs) and System Operator (SO)

- Great Britain - Distribution Network Operators (DNOs)

5. RIIO

- RIIO Model

- RIIO Highlights

- RIIO Stages

- Outputs and Price Control Methodology - Principle (Electricity)

- Outputs and Price Control Methodology - Primary Output

- Cost Benefit vs. Price Control Periods

- Outputs and Price Control Methodology - Revenue

- RIIO - Innovation Framework

6. Implementation of RIIO Model

- NGET - RIIO Timeline

- Network Performance - Electricity Transmission Under RIIO

- News Roundup

7. Case Reference - Network Operators

- Network Operator Viewpoint - Reference from SSE

- National Grid Electricity Transmission (NGET) - Primary Deliverable

- NGET - Output Total Cost Share

- NGET - Reliability and Availability

- NGET - Innovation

- Legal Disclaimer

8. Appendix

For more information visit http://www.researchandmarkets.com/research/lxvj4h/incentivebased