ADBA responds to Ofgem framework consultation on new price controls

With the current price control period ending in 2021 Ofgem is consulting on the new controls which will be set by RIIO-2, standing for Revenues = Incentives + Innovation + Outputs

ADBA has now submitted the industry response, which you can download here. We make two general observations, where we perceive Ofgem’s priorities to be opaque and the relevant consultation proposals to be deficient. These are the side-lining of decarbonisation and climate change imperatives and the restriction of support for innovation.


Decarbonisation and climate change imperatives are side-lined

We believe Ofgem should ensure adherence to the UK carbon budgets and the wider decarbonisation agenda are central to this energy network reform and all future price controls. These drivers should have a far greater presence in RIIO-2; they should have been more prominent in the consultation. Incoming price controls should enshrine intergenerational equity, recognising Ofgem’s duty to future consumers as well as its aim of keeping bills as low as possible for today’s consumers: future generations should not be made to pay for today’s insufficient action on climate change mitigation.


Network innovation will be stymied

Contrary to the consultation proposals to target funding, we believe innovation should be expanded. It is already the case that worthwhile applications for NIC funding are being denied due to overly narrow assessment criteria, with projects required to demonstrate: “innovation”, that they are “robust and ready to implement”, “involve partner organisations” and must be “relevant and timely”. A broader criterion would ensure that research, innovation and commercialisation efforts can be pursued.


If you have any questions about the RIIO process or our response to Ofgem please do get in touch. I can be reached at or on 020 3176 5417.

Posted in: Policy updates

Tags: anaerobic digestion, biogas, biomethane, food waste operators, crop operators, Ofgem, consultation, riio-2, price controls, decarbonisation, climate change, GDNs, dnos, network innovation, innovation, thom koller