We have published two reports for the regulated gas networks, setting out our independent view on the scope for ongoing efficiency at RIIO-GD3 and T3.

Ongoing efficiency represents the efficiency (or productivity) improvement that even the most efficient company in an industry can achieve.  At RIIO-GD3 and T3, Ofgem will set an ongoing efficiency target for all transmission and gas distribution networks.

In our first report (published May 2024), we set out a recommended range for ongoing efficiency, primarily based on a benchmarking analysis using total factor productivity (TFP) data from EU KLEMS.  We also highlight the importance of considering the broader slowdown in UK productivity growth.

Our second report (October 2024) builds on this analysis and incorporates the latest evidence, which further supports the need for the efficiency target to take into account the ongoing UK productivity slowdown.