Today we have published a consultation on our proposals for a revised suite of Stakeholder Satisfaction Key Performance Indicators.
As a regulated business, we operate under a price control framework covering fixed periods of time. The current price control model, RIIO (Revenue = Incentives + Innovation + Outputs), is an output led framework and the RIIO-T1 period runs from April 2013 to March 2021. There are six primary output categories in the RIIO framework which are safety, reliability and availability, environmental impact, conditions for connection, customer satisfaction and social obligations. As part of the RIIO-T1 price control settlement, we are responsible for delivering our approved Business Plan which includes targets for five of the six output categories outlined above (the social obligations output was not applied to electricity transmission licensees).
Our RIIO-T1 Business Plan included a proposal for Key Performance Indicators (KPIs) that would monitor our performance in delivering the Business Plan. These KPIs form part of the Stakeholder Satisfaction Incentive (SSI) mechanism. Our current suite of KPIs were developed, consulted on and implemented in 2013 and, whilst there have been a couple of Ofgem amendments to the baseline overall KPI target and the KPIs’ weighted contribution toward the overall SSI, the individual KPIs and their respective individual targets remain unchanged from their inception.
In October 2018 we stated our intention to review the existing suite of KPIs with the aim of developing a revised suite that provides better measures of stakeholder satisfaction. This consultation presents an opportunity for stakeholders to ensure that our proposed revised suite for KPIs meets their reasonable needs and expectations. There are questions at the end of the document asking for your input on the recommendations and proposals in relation to the review of our existing suite of KPIs, the stakeholder suggestions for new KPIs and our proposed revised suite of KPIs. The consultation period runs from today until 25 April 2019.
The responses to this consultation will be used to refine our proposed revised suite of KPI. Our intention following this consultation is to submit a revised suite of KPIs to Ofgem in accordance with paragraph 3D.18 of our Special Licence Conditions for use in 2019/20.