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2026-072 Future Price Control Frameworks

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  1. Veröffentlicht
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Beschreibung

This procurement is for support to help Ofgem develop its thinking on future network price control frameworks for the post-2031 period, building on the Future Systems and Network Regulation (FSNR) review rather than re-running it from first principles. The work should assess what has changed since FSNR and what those changes mean for the relative attractiveness, feasibility and risks of different future regulatory framework options. Ofgem is seeking external consultancy support to inform its Future Frameworks project, which is considering what the next generation of network price controls could look like beyond 2031. While RIIO has evolved significantly since its introduction in 2013, the energy sector is entering a period of unprecedented change driven by electrification, increasing network investment requirements, strategic system planning, changing patterns of energy demand, advances in flexibility markets and rapid technological development, including artificial intelligence. The requirement forms part of Ofgem’s wider Reimagining Network Regulation programme and builds on work previously undertaken through the Future Systems and Network Regulation (FSNR) review. The purpose of the procurement is to obtain independent expert analysis on how changes in the external environment and developments in Ofgem’s own regulatory capabilities may inform the design of future regulatory frameworks. In particular, the work will explore how enhanced data, digital, Intelligent Oversight and AI-enabled capabilities could create opportunities for alternative approaches to setting allowances, incentives, performance measures and accountability arrangements for gas and electricity network companies. Building on and advancing the work undertaken in FSNR, the successful tenderer will be expected to assess the relative strengths, weaknesses, risks and opportunities of different future framework options. The supplier should recommend a list of potential options for further consideration against the RIIO model, such as enhanced planning-based approaches, more adaptive and responsive ex ante regulatory arrangements and models with a greater focus on monitoring. The work will help Ofgem understand which options warrant further consideration, what enabling capabilities would be required to deliver alternative models, and what elements of new approaches could be tested during RIIO-3 and ED3 to inform future policy decisions. This procurement is intended to provide strategic insight rather than develop a detailed post-2031 price control design. The outputs will support Ofgem’s long-term thinking on how network regulation can continue to deliver affordable bills, resilient networks, high-quality service and effective delivery of Net Zero objectives in an increasingly digital and data-enabled environment. Scope of Requirements The scope of this work is to support and help Ofgem develop its thinking on future network price control frameworks for the post-2031 period, building on the Future Systems and Network Regulation (FSNR) review rather than re-running it from first principles. The work should assess what has changed since FSNR and what those changes mean for the relative attractiveness, feasibility and risks of different future regulatory framework options. The commission will build on Ofgem’s internal work which has begun to consider these questions, and which will be made available to the successful bidder upon contract commencement. Further information can be found in the attached 2026-072 Future Price Control Frameworks ITT document.

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