You are here

RIIO-T1 Electricity Price Control

On this page you'll see an example break that we have composed for the RIIO-T1 price control model for electricity transmission. If you've got to this page without knowing about Ofgem's RIIO Model you can click here for all the information you'll need.

This example has been made based on tariff information provided by British Gas's 'HomeEnergy Capped Feb 2018' for the Yorkshire Area.


Tariff: HomeEnergy Capped Feb 2018
Example dates: 1st Febuary 2016 - 4th March 2016
Amount of days: 32
Amount of electricity units used: 258 kWh
RIIO-T1 electricity rate: 4%

Unit rate: 12.29p per kWh
Standing charge: 26.01p per day

Usage price: 12.29p x 258 kWh = £31.7082
Standing charge price: 26.01p x 32 days = £8.3232

Subtotal = £40.0314 (rounded to two decimal points)

VAT 5% = £2

Total = £42.03 per month

Now we can work out the amount that will go to the electricity transmission company by taking 4% from the subtotal.

Electricity transmission cost: £1.6012

£1.60 isn't even enough buy a bag of Haribo, how is it going to pay for a whole transmission network? Well, if you take National Grid, for example, who supply to around 23.5 million homes in England, we can work out that if each of these households consumed equal to this example, National Grid would get £37,628,000 per month... enough to pay for at least 3 bags of Haribos at today's prices!