Network Innovation Allowance & Network Innovation Competition

As part of the RIIO: ED1, T1 and GD1 price controls Ofgem have introduced the Network Innovation Competitions (NICs) and the Network Innovation Allowance (NIA).

The NICs are annual competitions for electricity and gas, where network companies compete for funding for research, development and trialling for new technologies, operating and commercial arrangements. Funding will be provided for the best innovation projects which help all network operators understand what they need to do to provide environmental benefits and security of supply at value for money as Great Britain moves to a low carbon economy.

The NIA is a smaller allowance each RIIO network licensee receives to fund smaller scale innovative projects which have the potential to deliver benefits to network customers.

Each licensee group can submit up to five projects to ISP. Submissions will be screened against specific requirements and eligibility criteria. Following ISP, licensees will be able to merge similar projects but will not be allowed to substantially alter the high level solutions or the method they wish to use. Further information can be found in the Governance Documents for the Electricity NIC and the Gas NIC.

Network Innovation Allowance Governance Document Electricity

Network Innovation Allowance Governance Document Gas

Network Innovation Competition Governance Document Electricity

Network Innovation Competition Governance Document Gas


The NIA & NIC aim to provide a financial catalyst for innovation on GB electricity and gas distribution and transmission networks as GB move towards a low carbon economy.