Ofgem - Office of Gas and Electricity Market

12/04/2025 | Press release | Distributed by Public on 12/04/2025 04:28

Additional NIA RIIO-ED2 funding: licence modifications

We are consulting on proposed licence changes to facilitate the award of additional Network Innovation Allowance funding to Distribution Network Operators for the final two years of RIIO-ED2.

Consultation description

We launched a consultation in March 2025 regarding our proposal to provide additional funding through the Network Innovation Allowance (NIA) for the final two years of RIIO-ED2. In August we decided to carry out a detailed assessment of companies' justifications for receiving further allowance before providing additional NIA funding to Distribution Network Operators. This assessment informed our October decision on the amounts of additional NIA funding each DNO would receive.

As amendments to Special Condition 5.2 of the Electricity Distribution Licence will be needed to facilitate these additional allowances, this statutory consultation has been launched in time for proposed modifications to take place by 31 March 2026. It will run for 32 days and will take effect 56 days after our final decision.

Who should respond

We welcome responses from:

  • Distribution Network Operators
  • anyone with an interest in innovation funding in the energy sector

How to respond

Submit your response by 5 January 2026 by emailing [email protected].

Note: the amended licence special condition documents attached below are not fully accessible. If you require an alternative format, please contact [email protected].

Consultation documents

Ofgem - Office of Gas and Electricity Market published this content on December 04, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on December 04, 2025 at 10:28 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]