The PR4 Reporting and Incentives Framework – CER/18/087, was published by the CRU in May 2018. The framework sets out twenty decisions for improving reporting and incentives arrangements, covering the totality of the activities undertaken by TSO, TAO and DSO/DAO on behalf of current and future customers and market participants. The overall objective of the framework is to ensure that network companies are focussed on:
- delivering better outcomes for customers,
- using innovation to deliver services more efficiently, and
- meeting key national strategic objectives.
Monitoring and reporting give visibility to what each company is delivering and improves accountability. Incentive mechanisms go a step further by attaching additional financial rewards or penalties to specific reported measures of performance. Data generated through reporting and incentives helps to inform the more detailed cost assessments and forecasts involved in future price reviews, and ongoing regulatory scrutiny. They are, therefore, important instruments through which the CRU seeks to protect the interests of customers.
This web page includes decisions arising from the PR4 Reporting and Incentives Framework, i.e.:
- The new Key Performance Indicators (KPI) framework, against which the TAO’s performance will be assessed regarding its role in contributing to investment planning and delivery.
- The new Balanced Scorecard Framework (BSF), against which the TSO’s performance will be assessed regarding its role in transmission network investment planning and delivery.
- The TSO/TAO Mechanism to Enable Short-Notice Adjustments to Outage Plans.