Under the RIIO (Revenue = Incentives + Innovation + Outputs) regulatory model, the companies’ performance is assessed by the regulator, using a set of primary outputs. These demonstrate how they will have delivered end services to consumers, customers and stakeholders.
The Network Output Measures (NOMs) Methodology is designed to show that the three transmission companies are providing consumers with long-term value for money. It provides a joint basis for measuring asset risk which is designed to direct investment in the right areas, enabling effective management of network risk. Using a risk-based approach, the transmission companies will assess their asset base and direct investment in order to control the risk those assets present to the network, to health & safety, and to the environment. This will ensure the transmission companies will continue to deliver their primary outputs in the future.
Our consultation is now closed. Thank you for your comments. We are now reviewing your comments and we will respond shortly