As Ofgem sharpens its focus on outputs and delivery, DNOs must demonstrate that their plans are achievable, not just ambitious. RIIO-ED2 marked a decisive shift in Ofgem’s approach – from assessing the ambition of business plans to testing the ability to deliver against them. While ED2 funding decisions were set under reasonable assumptions, the operating reality has changed. DNOs are now under increasing pressure to demonstrate that approved investment plans are deliverable in practice, not just robust on paper. With clarity on ED3 expectations, IFS Copperleaf empowers DNOs with a clear ED3 transition plan.
ED3 Will Reward Delivery – Not Just Vision
ED3 marks a decisive change in how DNOs will be assessed by Ofgem.
The next price control is not simply about setting out ambitious long-term strategies. It is about demonstrating that those strategies are credible, resilient, and deliverable in practice, under the same real-world constraints DNOs are already facing today.
Ofgem’s expectations under ED3 extend well beyond cost efficiency. DNOs must show that their plans are grounded in:
- Integrated, long-term investment strategies spanning 25 years
- Confidence in delivery, taking explicit account of workforce, supply-chain and regional constraints
- Clear alignment between investment decisions, outputs and consumer outcomes
- Evidence that future plans are informed by proven delivery performance, not theoretical assumptions.
How IFS Copperleaf Supports ED3 Deliverability
IFS Copperleaf helps DNOs turn ED3 commitments into confident, deliverable plans by aligning investment, constraints, and value in one decision framework. This is enabled through IFS Copperleaf’s ability to:
- Optimizes ED3 investment portfolios using IFS Copperleaf’s value-based decision analytics to prioritize the work that delivers the greatest regulatory and consumer value
- Tests deliverability through scenarios by modelling funding, risk, workforce, and supply-chain constraints across long-term ED3 horizons
- Makes trade-offs transparent and defensible with auditable value frameworks that clearly show why investment decisions were made
- Tracks value and delivery in-year by monitoring portfolio performance and enabling reforecasting as conditions change
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