Published date: 22 February 2022

Closed opportunity - This means that the contract is currently closed. The buying department may be considering suppliers that have already applied, or no suitable offers were made.


Closing: 9 March 2022, 12pm

Contract summary

Industry

  • Petroleum products, fuel, electricity and other sources of energy - 09000000

  • Electricity, heating, solar and nuclear energy - 09300000

  • Financial consultancy, financial transaction processing and clearing-house services - 66170000

    • Financial consultancy services - 66171000

    • Energy and related services - 71314000

    • Business analysis consultancy services - 72221000

    • Auditing services - 79212000

    • Financial auditing services - 79212100

    • Business and management consultancy and related services - 79400000

    • Business and management consultancy services - 79410000

    • Business development consultancy services - 79411100

    • Financial management consultancy services - 79412000

Location of contract

Any region

Value of contract

£140,000 to £160,000

Procurement reference

MT225501

Published date

22 February 2022

Closing date

9 March 2022

Closing time

12pm

Contract start date

1 April 2022

Contract end date

31 March 2023

Contract type

Service contract

Procedure type

Open procedure (below threshold)

Any interested supplier may submit a tender in response to an opportunity notice.

This procedure can be used for procurements below the relevant contract value threshold.

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

Description

This procurement is for financial model audit services to provide assurance on the RIIO-2 Electricity Distribution Price Control Financial Model (RIIO-ED2 PCFM). The model acts as the official license instrument for setting revenues for the Distribution Network Operators (DNOs). The audit is essential for providing external stakeholders with confidence in the model and will be an important mitigant against DNOs' appeals to the Competition and Markets Authority (CMA).
Ofgem is in the process of setting the network price control framework for the Electricity Distribution sector. The RIIO-ED2 price control sets the outputs that the 14 electricity Distribution Network Operators (DNOs) need to deliver for their consumers and the associated revenues they are allowed to collect for the five-year period from 1 April 2023 to 31 March 2028.
Programme overview
The Price Control Financial Model (PCFM) (aka License Model (LiMo)) is the financial model that is used to calculate the DNOs' revenues during RIIO-ED2. As well as this key function, it is also used to carry out financeability analysis in the run-up to establishing RIIO-ED2. Financeability analysis allows us to determine the potential impact of RIIO-ED2 on the financeability of DNOs based on both notional financial parameters and actual company data.
As part of the process of finalising the RIIO-ED2 price control, over the course of 2022, Ofgem will reduce the current 'internal' financial model (containing full financeability functionality) down to an official 'external' version which will be used throughout RIIO-ED2 to determine DNOs' revenue allowances. The key assurances that Ofgem require on these models are:
1. A full audit of the external version of the model, which will be in development up until late 2022/ early 2023.
2. Assurance of the financeability analysis elements of the internal version of the model, which will be relied upon for making key policy decisions up until Final Determinations.
The audit process will need align with these model developments, in line with the programme milestones.
Please see attached 2022-015 RIIO-ED2 PCFM Financial Model Audit ITT document for further information.

More information

Links

About the buyer

Contact name

Lynsey Gordon

Address

10 South Colonnade
Canary Wharf
London
E14 4PU
England

Telephone

+44 2079017000

Email

procurement2@ofgem.gov.uk

Website

http://www.ofgem.gov.uk