Ofgem’s RIIO-3 Sector Specific Methodology Decision
On 18 July 2024, Ofgem published its Sector Specific Methodology Decision (SSMD) for the forthcoming RIIO-3 price control period for electricity transmission (ET), gas transmission (GT) and gas distribution (GD) networks.1 This follows Ofgem’s consultation on the matter in December 2023.2 RIIO-3 will last for… Read More
The future funding of the England & Wales water sector: Ofwat’s draft determinations
On Thursday 11 July, Ofwat (the England and Wales water regulator) published its much anticipated Draft Determinations (DDs). As part of the PR24 price review, this sets out its provisional assessment of allowed revenues and performance targets for AMP8 (2025–30)—and will be of great interest to water companies, investors,… Read More
Growth Zero
Climate change is reshaping our world. To meet the goal of net zero by 2050 and limit global warming, urgent transformation and innovation are needed from governments and businesses. Read More
Deceptive patterns: how can we make choices fairer online?
Online, every click and swipe is subtly influenced by how choices are presented to you. In a world where what we watch, listen to, read, and buy is the result of responding to the choices presented to us on a screen, this choice architecture is hugely important. We may not… Read More
How is artificial intelligence (AI) changing our world?
Artificial intelligence (AI) is a rapidly evolving technology which is set to affect every aspect of our daily lives. Will AI drive vehicles, diagnose dementia and cancer, write novels and beat us at our favourite games? Or is that future here already? In our latest ‘Top of the Agenda’ podcast,… Read More
A guide to revising tariff structures
A vital aspect of the design of regulated markets is the definition of tariff structures. There are many influences on this, with potentially conflicting pressures, and as a result there is a wide range of potential outcomes. This article discusses both influences and outcomes and identifies factors to consider… Read More
Economics of the Data Act: part 1
As electronic sensors, processing power and storage have become cheaper, a growing number of connected IoT (internet of things) devices are collecting and processing data in our homes and businesses. The purpose of the EU’s Data Act is to define the rights to access and use data generated by… Read More
Adding value with a portfolio approach to funding reduction
Budgets for capital projects are coming under pressure as funding is not being maintained in real price terms. The response from portfolio managers has been to cancel or postpone future projects or slow the pace of ongoing projects. If this is undertaken on an individual project level, it could lead… Read More
Consumer Duty board reports: are firms prepared for the July 2024 deadline?
The UK Financial Conduct Authority’s (FCA) Consumer Duty, a new outcomes-based regulation for financial services firms, has now been in force for over six months. July 2024 will see the deadline for the first annual Consumer Duty board reports. We share our reflections on the importance of these documents and… Read More
Adaptive planning: a proven solution in uncertain times
Ofgem published its Sector Specific Methodology Consultation (SSMC) for the RIIO-3 price control in December 2023. Over the past three months, networks have been engaging with Ofgem to prepare their submissions as responses to the SSMC. In reviewing the SSMC, Oxera had noted1 the need to support ‘the… Read More