Tender

RIIO-ED2 PCFM Financial Model Audit

OFGEM

This public procurement record has 1 release in its history.

Tender

22 Feb 2022 at 17:45

Summary of the contracting process

Ofgem, the buyer for this tender, is seeking financial consultancy services through the tender titled "RIIO-ED2 PCFM Financial Model Audit". This procurement falls under the financial consultancy sector and is located in the United Kingdom. Currently in the Tender stage, the tender period will close on 9 March 2022. The estimated value of the contract ranges from £140,000 to £160,000, with the contract expected to commence on 1 April 2022 and run until 31 March 2023, under an open procurement procedure.

This tender presents a valuable opportunity for businesses specialising in financial auditing and consultancy services, particularly those with experience in regulatory frameworks and energy sector financial models. Small and medium-sized enterprises (SMEs) are particularly encouraged to participate, as they may bring innovative solutions and flexible approaches that larger firms cannot provide. Companies with a strong background in managing financial audits and an understanding of the energy market would be well-suited to compete for this contract.

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Notice Title

RIIO-ED2 PCFM Financial Model Audit

Notice 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.

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/f005d99f-0f9c-4950-a1ce-d49f4ed9af65
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure (below threshold)
Tender Suitability
SME
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy

66 - Financial and insurance services

71 - Architectural, construction, engineering and inspection services

72 - IT services: consulting, software development, Internet and support

79 - Business services: law, marketing, consulting, recruitment, printing and security


CPV Codes

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

09300000 - Electricity, heating, solar and nuclear energy

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

66171000 - Financial consultancy services

71314000 - Energy and related services

72221000 - Business analysis consultancy services

79212000 - Auditing services

79212100 - Financial auditing services

79400000 - Business and management consultancy and related services

79410000 - Business and management consultancy services

79411100 - Business development consultancy services

79412000 - Financial management consultancy services

Notice Value(s)

Tender Value
£160,000 £100K-£500K
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
22 Feb 20224 years ago
Submission Deadline
9 Mar 2022Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
31 Mar 2022 - 31 Mar 2023 6-12 months
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Not Specified
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
OFGEM
Contact Name
Lynsey Gordon
Contact Email
procurement2@ofgem.gov.uk
Contact Phone
+44 2079017000

Buyer Location

Locality
LONDON
Postcode
E14 4PU
Post Town
East London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI4 Inner London - East
Small Region (ITL 3)
TLI42 Tower Hamlets
Delivery Location
Not specified

Local Authority
Tower Hamlets
Electoral Ward
Canary Wharf
Westminster Constituency
Poplar and Limehouse

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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