Monitoring and Reports
The CRU have put in place incentives and reporting requirements to encourage efficiency and performance by energy network companies to ensure that customers and network users' interests are protected.
As part of the CRU's framework for approving revenue and tariffs for the network companies, there are incentives and reporting requirements that are designed to encourage efficiency by these operators
The CRU achieves this by:
- Applying incentives
- Monitoring capital expenditure
- Monitoring performance
Applying Incentives and rate of return
The CRU has adopted an incentive-based model.
Incentives include operational and service level targets. Incentives are an important area of regulation for monopoly entities. Incentives are intended to align the interests of the regulated companies with those of their customers, by encouraging the utilities to deliver a quality level of service to customers.
Monitoring Capital expenditure
As part of the fifth price control (PR5), the CRU put in place a capital expenditure monitoring process as part of the Agile Investment Framework. This framework will accommodate uncertainty and the changing demands of the electricity networks and market.
This monitoring process will include joint quarterly (four times a year) reporting by the electricity transmission system operator and electricity transmission assets owner..
During the PR5 period, the CRU will publish quarterly reports on TSO and TAO Capex delivery. All reports from previous Price Review periods and the current PR5 period will be published on the CRU website.
Monitoring Performance
Every year, the energy network companies submit Performance Reports to the CRU, the reports provide updates on some of the following key areas in the businesses:
- Customer Service
- Cost Performance
- Capital Programmes
- Supply Quality & Reliability
- Safety
- Sustainability
- Service Level Agreements Performance
- Compliance with licence requirements
You can find the most recent performance reports here: