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NETWORK / 8 / APRIL 2018 O n Wednesday 7 March, energy regulator Ofgem published proposals for evolving the RIIO (Revenue = Incentives + Innovation + Outputs) regula- tory framework for Britain's energy network companies from 2021. In parallel with the regulatory framework de- velopment, network companies are creating their business plans covering a significant part of the next decade. National Grid wants to fully involve all our customers and stake - holders in the way we develop the plans and we want the sector to help shape our plans for the future of our gas and electric- ity transmission businesses. RIIO2 will be a critical period in shaping the future of energy. Network infrastructure and system operation will play a crucial role in delivering a low carbon future for the UK, continuing to provide secure, reliable and resilient energy supplies to homes and busi - nesses, representing good value for money for bill payers. The RIIO framework is an enabler of this, and will need to ensure that consumers continue to benefit from high levels of investment, encourage companies to innovate, drive efficiency to lower costs and continue to improve services. We want to work constructively with stakeholders to shape our business plans and develop a RIIO2 regulatory framework that delivers good value for bill payers and fair returns for investors. Past successes and future challenges It is a good time to reflect on what networks have achieved working together under the various regulatory frameworks. Ofgem set out a strong case in its RIIO2 announce - ment: since 1990, network companies have invested around £100 billion in the national and local grids, operating one of the most reliable set of networks in Europe. Power cuts have almost halved since 2001, while customer satisfaction has improved significantly. The cost of transporting a unit of electricity around Britain has fallen by 17 per cent since the mid-1990s, relative to the retail price index. National Grid is proud to be part of this success, estimating that RIIO2 our electricity transmission business has delivered £12bn of consumer benefit since privatisation, whilst delivering world class network reliability, currently at 99.9994 per cent, for our customers. With our role at the heart of the industry, we have a unique perspective on the energy revolution that is underway and that will form the backdrop for RIIO2. Over the past few years we have seen a huge increase in wind and solar generation connections and last year we experienced a watershed moment - the first ever working day without any coal-fired generation running in Britain – unthinkable for so long in a country built on the back of "King Coal". Our networks have facilitated the move from reliance on our North Sea gas supplies to being part of a dynamic international gas market with sup - plies coming from around the world. This re-shaping will continue to present new challenges as the decarbonisation agenda progresses in transport and heat, smart technologies enable more automation and unlock new possibilities, and technology enables increased consumer interaction – all requiring intelligent, flexible and secure networks to enable a connected future. Customer focus and savings for consumers But it is not just technical challenges that we face. The expectations of bill payers and the customers that connect directly to our networks have never been higher. With the increasing focus on energy bills, Ofgem has signalled very clearly that lowering costs and delivering value for money for consumers will sit at the heart of their proposals for RIIO2. National Grid makes up about three per cent of a typical Reshaping the energy landscape Mark Brackley, National Grid's project RIIO2 director, reflects on the challenges for the RIIO2 regulatory period and how the industry can help shape National Grid's business plans. "With our role at the heart of the industry, we have a unique perspective on the energy revolution that is underway and that will form the backdrop for RIIO2."