Network Innovation Allowance

The electricity and gas transmission and distribution networks licensees are all businesses regulated by Ofgem. As such they are subject to price controls set by Ofgem - Revenue=Incentives+Innovation+Outputs (RIIO) which are currently set to run for eight year periods. 

As part of the RIIO price controls Ofgem introduced the Network Innovation Allowance (NIA). The NIA is a set allowance each RIIO network licensee receives as part of their price control allowance. The objective being to provide a financial catalyst for innovation as the UK moves towards a low carbon economy.

The NIA provides limited funding to RIIO network licensees to –

Fund technical, commercial, or operational projects directly related to the licensees network that have the potential to deliver financial benefits to the licensee and its customers.

Licensees are required to publish their Project Registration Information and regular updates on all projects on the Energy Networks Association portal: Smarter Networks Portal.