Our RIIO-3 Business Plan 2026 - 2031
Keeping people warm, while protecting the planet
WHO WE ARE
Transporting critical energy for the UK
We are, by some way, the largest gas distribution company in the UK, delivering gas to c.11 million homes, businesses and 40,000 industrial customers. We feed 188 power stations and connect 45 biomethane production plants and 14 compressed natural gas offtake sites.
In doing this, we are responsible for maintaining our network, ensuring that it operates safely and reliably for those who rely on it. We also help homes, businesses and renewable gas suppliers connect to our network.
Collectively our networks carry almost as much energy as the entire UK electricity network does today and include the three largest cities of London, Birmingham and Manchester. Our networks have very different characteristics, however, given the diverse regions they cover.
A MESSAGE FROM OUR CEO
This plan, I believe, is a real manifestation of our purpose which is ‘keeping people warm, while protecting the planet"
Our RIIO-3 plan is built on strong foundations. We will not stand still, and continue to push the boundaries for the sector. This plan will take us on the next step of our journey and continues to ensure we do the very best for our customers. We need to continue to invest to maintain the truly world class assets that we have, so that the gas network can play a crucial role in delivering net zero over the decades to come.
Steve Fraser
Chief Executive Officer
Executive summary
Around 35% of the nation’s energy needs are transported through our networks, and hence we provide critical infrastructure to keep customers warm, and power businesses and industry across the regions we serve.
It is essential therefore that we continue to target investment in our network to deliver a safe, reliable and resilient service whilst also ensuring that customers pay no more than necessary.
We also want to play a leading role in the transition to net zero and provide resilience to the UK energy system, whatever the decarbonisation pathway we follow.
Foundations of our plan
We have used a range of insights to form the foundations of our plan and to shape the commitments we are making for RIIO-3. There are three foundations: a robust understanding of the future role of the gas network as we transition to net zero; how we can build on the strong base of performance we are delivering in RIIO-2; and critically what our customers and stakeholders expect from us. We have engaged with a wide cross-section of customers and stakeholders and have triangulated their insights, with the other two foundations, to determine priorities and requirements. Together this has shaped the golden thread of the plan.
Our commitments
Safe, secure and resilient supplies
We have set out a plan to deliver a safe, secure and resilient network. The plan covers iron mains replacement, asset health, major capital projects, and emergency and repair including services beyond the meter to support customers’ in-home safety. We outline plans for resilience relating to cyber and physical security, climate change and our workforce and supply chain.
Infrastructure fit for a low-cost transition to net zero
We have set out a plan to ‘protect the planet’ by reducing methane leakage, improve our wider environmental impact and collaborate with others to strategically plan for and facilitate a low-cost transition to net zero. This is set out in more detail in our Environmental Action Plan (EAP), which has been informed by expert stakeholders and external benchmarks and analysis.
High quality service
We will maintain the excellent levels of customer satisfaction we have achieved over RIIO-2, and evolve this for future customer requirements relating to our disconnections service. In addition, we will extend our sector leadership in supporting customers in vulnerable situations, and how we create the most value from our investments in this area. We also describe our plans to roll out the benefits of the streetworks collaboration incentive in North London to all of our networks.
System efficiency and long-term value for money
We set out the expenditure required to deliver the outcomes our customers and stakeholders desire for RIIO-3, and is required to meet our statutory obligations. We describe the key changes in spend from RIIO-2, the drivers behind these costs and how we have ensured the efficiency of our plans to deliver long-term value for money for customers. We also show how the enabling strategies for data and digitalisation and innovation underpin the plan. Finally we explain how we propose to manage uncertainty and protect consumers from non-delivery.
How we propose to finance the plan
We set out what we need in order to be an investable business for RIIO-3 so we can raise and retain the debt and equity finance needed to invest in and maintain our safe and resilient network infrastructure. This requires a regulatory framework that fairly balances the level of risk and return available to investors, whilst ensuring current and future customers only pay for an efficient level of expenditure.
What this means for the customer bill and UK economic growth
We set out the contribution our network costs have to an average domestic customer’s bill. We then set out how our proposed plan would impact the bill together with the impact of some of the financing choices Ofgem is consulting on for RIIO-3. We then show how our plan will contribute to UK economic growth using Ofgem’s defined criteria for economic growth from their statutory growth duties.
