As part of its RIIO-2 determinations issued today, the regulator has increased the allowed return on equity from the draft determinations from 3.95% to 4.30% (with an expected outperformance of 0.25%).

But this compares to around 7.8% for RIIO-1 and represents the lowest ever returns ever set for networks companies. https://www.ofgem.gov.uk/system/files/docs/2020/12/final_determinations_-_finance_annex.pdf

Ofgem has proposed to allow the three electricity transmission networks £8.7bn core baseline total expenditure instead of the 10.9bn sought by the companies, with 60% linked to mechanisms to ensure that the companies are only funded for what they deliver. https://www.ofgem.gov.uk/system/files/docs/2020/12/final_determinations_et_annex.pdf

Ofgem expects the average household gas bill to be reduced by around £15 a year as a result of its final determination on the RIIO-2 gas distribution price control issued today. https://www.ofgem.gov.uk/system/files/docs/2020/12/final_determinations_-_gd_annex_.pdf