We recognise our Business Plan must be flexible and adaptable to the fast paced change associated with the shift to a smart energy future. While some types of work to manage the network are certain, the absolute volumes of activity will evolve over time. Potential changes in legislation and government policy and unforeseen events such as Covid-19, as experienced in the current price control period, can all bring uncertainty.
Uncertainty mechanisms are financial mechanisms that flex the allowed revenue for DNOs, linked to changes in requirements not factored into baseline allowances, thereby protecting both customers and companies from risk. This chapter sets out how uncertainty mechanisms work and how we will utilise them to adapt to change.