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RIIO-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors

RIIO-3 Business Plan Guidance

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RIIO (Revenues = Incentives + Innovation + Outputs) is our approach to ensuring that the monopoly companies that run our gas and electricity networks have enough revenue to run and invest in a network that delivers efficiently what customers value. On 13 December 2023, we published our consultation on the Sector Specific Methodologies for Electricity Transmission, Gas Transmission and Gas Distribution for the next price control period which runs from 1 April 2026 to 31 March 2031 (RIIO-3). This document sets out our decisions on bespoke policy areas for each of these sectors as well as cross-cutting policies. Further information on decisions for each sector, and on financing, are set out in separate annexes to this document. Network companies will use this information to develop their business plans over the remainder of 2024.

Main document

[RIIO-3 Sector Specific Methodology Decision - Overview [PDF, 827.67KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-07/RIIO_3_SSMD_Overview.pdf)

Subsidiary documents

[RIIO-3 Sector Specific Methodology Decision - ET Annex [PDF, 1.05MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-07/RIIO-3_SSMD_ET_Annex.pdf)

[RIIO-3 Sector Specific Methodology Decision - GD Annex [PDF, 740.32KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-07/RIIO-3_SSMD_GD_Annex.pdf)

[RIIO-3 Sector Specific Methodology Decision - GT Annex [PDF, 656.23KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-07/RIIO-3_SSMD_GT_Annex.pdf)

[RIIO-3 Sector Specific Methodology Decision - Finance Annex [PDF, 2.34MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-07/RIIO-3_SSMD_Finance_Annex.pdf)

[RIIO-ET3 Economic Lives of Electricity Network Assets (CEPA) [PDF, 682.50KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-07/RIIO-ET3_CEPA_Economic_Lives.pdf)

[RIIO-3 SSMD Allowed Return on Equity Early View Summary Calculations [XLSX, 969.23KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-08/RIIO-3_SSMD_Allowed_Return_on_Equity_Early_View_Summary_Calculations_%28External%29%20Accessibility.xlsx)

[RIIO-3 SSMD Allowed Return on Debt equity issuance allowance cost savings [XLSX, 56.45KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-08/Equity_issuance_allowance_cost_savings_from_adopting_cost_of_debt_inflation_option_1.xlsx)

[RIIO-3 SSMD Allowed Return on Debt future bill impacts [XLSX, 567.81KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-08/Cost_of_debt_inflation_options_nominal_RAV_model_for_future_bill_impacts.xlsx)

[RIIO-3 SSMD Allowed Return on Debt historic bill impact estimates [XLSX, 244.29KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-08/Updated_cost_of_debt_inflation_call_for_input_model_using_actual_capital_structures_for_historic_bill_impact_estimates.xlsx)

RIIO-3 Business Plan Guidance

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RIIO-3 Sector Specific Methodology Decision for the Gas Distribution, Gas Transmission and Electricity Transmission Sectors