DNOs continue strong performance against output targets

Electricity Distribution Network Operators (DNOs) have continued to perform strongly against output targets, according to Ofgem.

In early February, the regulator published its RIIO-1 Electricity Distribution Annual Report 2018-19, assessing DNO performance against outputs and incentives, innovative activities and their overall financial performance. All DNO groups were found to be on track to either meet or exceed output targets – connections, social obligations and customer service, reliability and availability, and environment – by the end of RIIO-ED1, with an overall improvement found under the Time to Connect Incentive compared to 2017-18 in 2018-19. The majority of DNO groups were found to be outperforming their annual target.

When it comes to total expenditure (totex), it was found performance varies across DNO groups with the majority underspending to date from a 2% overspend (SP Energy Networks) to a 16% underspend (UK Power Networks).

In terms of the impact on customer bills, based on estimates, the average GB customer in 2019-20 is set to pay £90 per year in real 2018-19 price terms for electricity distribution costs. Charges were found to differ considerably depending on the region in which a domestic consumer is based from £73 in London to £125 in the North of Scotland.