CRE are the energy regulator for France, and was considering how to develop its practices for regulating the revenues of those that own and operate networks for gas and electricity. As part of this consideration, we (along with Adequations) advised them on the “RIIO” (Revenue = Investment + Innovation + Outputs) framework developed by Ofgem for the regulation of energy networks. We analysed the costs and benefits of the different components of RIIO, including:
- Reviewing the evolution of network regulation in the UK since 1990, to show how each of the components came about with a particular emphasis on RIIO.
- Reviewing inputs and performance indicators required by RIIO and the costs to UK regulated utilities and Ofgem of providing and analysing this information.
- Reviewing how UK regulated utilities have changed their business practices in light of RIIO, with a particular emphasis on stakeholders participation and the scale of benefits to consumers as a result of these changes.