Our RIIO-2 Business Plan
Since the start of RIIO-2 in April 2021, we have been evolving to meet the changing needs of the energy industry. And we are on track to make sure that the energy system can support 100% zero carbon power as soon as 2025.
We are currently developing our first RIIO-2 business plan as NESO, Business Plan 3 (BP3). BP3 will be a one-year submission from April 2025 – March 2026.
A draft version of BP3 will go live for consultation on 2 December 2024. Stakeholders will have until 10 January 2025 to respond. We will then publish the final version of our plan on 31 January 2025.
If you have any questions, related queries or would like to discuss our plan in more detail please contact us via [email protected]
Our draft RIIO-2 Business Plan 3 for the period April 2025 to March 2026 (BP3) marks a significant milestone as it’s our first business plan as NESO and the final plan for the RIIO-2 period. This business plan is intended to look and feel different to our previous business plans. We have been working closely with Ofgem, the energy regulator, on reforming our regulatory framework. The changes in this plan reflect that we have become a new independent, government-owned organisation with expanded roles and responsibilities.
As the energy system continues to undergo rapid and fundamental transition, our focus remains on promoting net zero, access to affordable energy and ensuring security of supply for the nation.
Our business plan identifies eight performance objectives that ensure we deliver value for consumers and fulfil our purpose and vision. These objectives serve as guiding principles for our expanded roles and responsibilities as we move towards clean power by 2030 and aim for net zero emissions by 2050.
BP3 proposes our delivery focus for the period April 2025 to March 2026. It will not cover all that we do. We remain committed to delivering existing commitments from BP2 (those not completed or continuous activities) and our licence obligations.
Read the draft BP3 document executive summary here.
Read the full draft BP3 document here.
What is BP2?
We have now published our final second Business Plan (BP2) for the RIIO-2 period: ‘Accelerating the transition to a flexible, low carbon energy system’. BP2 sets out our goals for years three and four of RIIO-2 (2023-2025) as we respond to the rapidly changing external environment. The plan includes five new activities and 16 new sub-activities to accelerate the transition to net zero.
Our mission is to drive the transformation to a fully decarbonised electricity system by 2035 which is reliable, affordable and fair for all. We believe that the activities outlined in our plan support this mission and deliver value for customers and consumers, delivering net benefits of around £2.8 billion.
At the end of November 2022, Ofgem released their BP2 Draft Determinations giving their initial view of, and position on, our business plan.
As Ofgem published their BP2 Draft Determinations, they also launched an accompanying consultation, which we’ve responded to. Below, you can find the links to the Executive Summary, our full consultation response and the supplementary information annex, which we submitted alongside our response:
- View Ofgem’s Draft Determinations outcomes
- View our consultation response - cover letter
- View our consultation response – Executive Summary
- View our consultation response – full response
- View our supplementary information annex
As a result of Ofgem’s feedback, we have also updated our Delivery Schedule – the latest version can be found further down this page.
We have engaged with the ERSG (our independent stakeholder group) throughout the development of our BP2. You can read their report on our final plan.
What is RIIO-2?
RIIO-2 runs from April 2021 onwards and sets out price controls to determine the amount we can earn for the projects we deliver and the services we provide. It is the second price control under Ofgem's RIIO performance model. This price control makes sure that we are delivering for consumers. RIIO stands for Revenue = Incentives + Innovation + Outputs.
It is our first price control period as a legally separate entity and covers our plans for a five-year period - 2021 to 2026. It provides an exciting opportunity for us to demonstrate how we can be more transparent, agile and innovative to enable the transition to a sustainable energy future.
The five-year period is designed with two-year planning cycles, recognising that the energy sector is experiencing an unprecedented level of change and that our plans need to remain flexible and agile in the face of substantial uncertainty.
Get involved
On this page, you can find information about how we work with our stakeholder group, key dates in the BP3 development timeline, and details of any upcoming webinars and events.
How we're performing under RIIO-2
In April 2021 new RIIO-2 price controls came into effect which determine the amount we can earn for the projects we deliver and the services we provide.
Previous plans and documents
On this page, you can find all previous Forward Plan and RIIO-2 documents.
Independent Stakeholder Group (ISG)
The independently chaired Stakeholder Group provides valuable scrutiny and challenge throughout the development of our regulatory submissions and RIIO-2 Business Plans.
RIIO-2 publications
BP3 Documents
Draft BP3 Document
BP3 is a full refresh of our RIIO-2 plans and sets out detailed proposals.
BP3 Executive Summary
Download the executive summary of BP3.
BP2 Documents
Our final BP2 Delivery Plan 2023-2025
BP2 is a full refresh of our RIIO-2 plans and sets out detailed proposals for years three and four of the original five-year framework, i.e. April 2023 – March 2025.
Executive Summary
No time? Download the executive summary of BP2.
BP3 Consultation
A draft version of BP3 will go live for consultation on 2 December 2024. Stakeholders will have until 10 January 2025 to respond. We will then publish the final version of our plan on 31 January 2025.
Read the draft BP3 document executive summary here.
Read the full draft BP3 document here.
Read Enabling Functions BP3 Annex document here.
To help stakeholders understand the new format of BP3, and the Performance Objectives contained in the plan, we have developed a series of webinars. There will be a single high-level kick off webinar, followed by four webinars that examine pairings of our Performance Objectives.
Webinars
We held a series of webinars to give context to our Draft BP3 Consultation. You can watch the recordings of the webinars below:
Draft BP3 Consultation Webinar Series Launch
In this webinar we provide a high-level overview of what BP3 is, how it’s been developed and the consultation process. Our BP3 activity is aligned to eight Performance Objectives with associated major deliverables and success measures from April 2025 to March 2026. In this webinar we introduce these Performance Objectives and explain why we believe they are the right commitments to take.
Draft BP3 Webinar Series: Clean Power 30 & Whole Strategic Energy Plans
In this webinar we discuss the development of activities relating to Clean Power 30 and Strategic Whole Energy Plans (two of our eight BP3 Performance Objectives). Stakeholders hear about the Major Deliverables and Success Measures that come under Clean Power 30 or Strategic Whole Energy Plans. There was a Q&A session at the end of the webinars, where stakeholders could have their questions about our Performance Objectives answered.
Draft BP3 Webinar Series: Operating the Electricity System & Secure and Resilient Energy
In this webinar seminar we discuss the development of activities relating to Operating the Electricity System & Secure and Resilient Energy. Both of are two of our eight Performance Objectives set out within BP3. Stakeholders were given chance to hear about the Major Deliverables and Success Measures that come under either Operating the Electricity System or Secure and Resilient Energy. There was a Q&A session at the end of the webinars, where stakeholders could have their questions about our Performance Objectives answered.
Draft BP3 Webinar Series: Connections Reform & Fit-for-Purpose Markets
In this webinar seminar we discuss the development of activities relating to Connections Reform & Fit-for-Purpose Markets. Both of are two of our eight Performance Objectives set out within BP3. Stakeholders were given the chance to hear about the Major Deliverables and Success Measures that come under either Connections Reform or Fit-for-Purpose Markets. There was a Q&A session at the end of the webinars, where stakeholders could have their questions about our Performance Objectives answered.
Draft BP3 Webinar Series: Enhanced Sector Digitalisation and Data Sharing & Separated NESO systems, processes and services
In this webinar seminar we discuss the development of activities relating to Enhanced Sector Digitalisation and Data Sharing & Independent NESO systems, processes and services. Both are two of our eight Performance Objectives set out within BP3. Stakeholders were given the chance to hear about the Major Deliverables and Success Measures that come under either Enhanced Sector Digitalisation and Data Sharing or Separated NESO systems, processes and services. There was a Q&A session at the end of the webinars, where stakeholders could have their questions about our Performance Objectives answered.
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