Our regulatory business plan for 2026-2028

Our regulatory framework is how Ofgem ensures we provide value for consumers as we deliver our activities.​

Under our regulatory framework, we must follow Ofgem’s guidance to produce business plans detailing how our activities deliver value for consumers. ​ The framework includes our requirements for performance reporting via our incentives scheme.​

Our regulatory framework includes; two licenses, our funding arrangements and regular performance monitoring and reporting requirements.

The requirements and obligations under our regulatory framework are set out in our licences, with further detail provided in both the Performance Arrangements Governance Document (PAGD) and the Business Plan Guidance.​

From 1 April 2026, we have moved onto our new enduring regulatory framework, which replaces the RIIO‑2 framework that concluded in March 2026. ​

Within this new framework, we must continue to comply with a range of licence conditions set out in the updated Licence Expectations Document and the PAGD.​

Ofgem use our business plans to judge the costs we’re allowed to recover from the consumer for our activities and how ambitious the plan is. Ofgem’s ambition rating is important and acts as a performance guide for when we start delivering the plan.

As part of our regulatory framework, we must submit business plans which set out the activities we will deliver in a specific period and the costs for delivering these. We work closely with teams around the business and listen to stakeholder views to develop these plans. ​

NESO1 is our first business plan outside of the RIIO-2 period and our second business plan as NESO.

NESO1 sets out our delivery priorities for the next two years through a set of Performance Objectives.

These Performance Objectives underpin our strategic aims and reflect our purpose, vision and values​. The Performance Objectives are supported by major deliverables and success measures that will help us deliver up to £3.2 billion in consumer value by March 2028. 

NESO1 has been shaped by a period of extensive stakeholder engagement. Over the past year, we’ve worked closely with a range of partners including government departments and our regulator Ofgem, other energy industry participants and consumer groups, and regional representatives. We’ve been supported by a range of stakeholder groups, including our Independent Stakeholder Group (ISG) who provide scrutiny and challenge on the contents of our plan. 

You can learn more about our approach to engaging stakeholders for the development of our NESO1 plan, by reading our Stakeholder Annex.