This methodology summarises our views and assessment of Real Price Effects (RPEs) which are defined as input price or cost pressures on our activities including operating, maintaining and building on the electricity network. 

The cost pressures are based on an assessment of economic data and forecasts covering plant and equipment, labour and materials. 

We have summarised where we believe cost pressures will arise in RIIO-T2 based on our assessment of evidence, the balance of risk and the likelihood of costs increasing over and above inflation (in this case CPIH for RIIO-T2).

Real Price Effects Methodology