How we're performing under RIIO-2

What is the Incentives Scheme? 

The incentives scheme is designed to encourage us to make improvements to the way we perform our roles to maximise benefits for consumers. It also aims to create transparency around our performance and make us clearly accountable to our customers. 

At the end of each business plan period, a Performance Panel (a group of independent experts) scores how well we have delivered against our business plan. Our regulator, Ofgem, then decides whether to deviate from these scores in their assessment.

In contrast to our incentive schemes as ESO, we will no longer receive a financial reward or penalty for our performance. This reflects a change in how we are regulated as NESO, which is a non-profit independent public corporation. 

The reporting requirements and assessment methodology for the incentives scheme is set out in Ofgem’s Performance Arrangements Governance Document (PAGD) which was updated for the Business Plan 3 (BP3) period starting 1 April 2025.

Performance documents 2021-25

How we report on our progress

For the BP3 period (April 2025-March 2026), Ofgem and a Performance Panel will assess our performance based on two criteria:

1. Achievement of our business plan aims as set out in our BP3 plan
2. Delivery of Value for Money.

In line with Ofgem’s PAGD which sets out the detailed arrangements for our assessment period up to 31 March 2026, we publish a report on this page every month. The reports vary in their contents: