--- title: "RIIO-ED2 PCFM Financial Model Audit" ocid: "ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe" markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe.md" json_url: "https://d3tenders.com/contract/ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe.json" source: "Contracts Finder" current_stage: "Tender" buyer: "OFGEM" published: "2022-02-22" --- # RIIO-ED2 PCFM Financial Model Audit Buyer: OFGEM Current stage: Tender OCID: ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe) [Download OCDS JSON](https://d3tenders.com/contract/ocds-b5fd17-58d5bb7b-b857-4975-b458-29015a412dfe.json) ## Summary 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. ## Notice 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. ## Key Details | Field | Value | | --- | --- | | Publication source | Contracts Finder | | Latest notice | https://www.contractsfinder.service.gov.uk/Notice/f005d99f-0f9c-4950-a1ce-d49f4ed9af65 | | 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 | | All stages | Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 22 Feb 2022 | | Submission deadline | 9 Mar 2022 | | Future notice date | Not specified | | Award date | Not specified | | Contract period | 31 Mar 2022 - 31 Mar 2023 | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | £160,000 | | Lots value | Not specified | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Active | | Lots status | Not specified | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | OFGEM | | Locality | LONDON | | Post town | East London | | Postcode | E14 4PU | | Country | England | | ITL 1 | TLI London | | ITL 2 | TLI4 Inner London - East | | ITL 3 | TLI42 Tower Hamlets | | Local authority | Tower Hamlets | | Electoral ward | Canary Wharf | | Westminster constituency | Poplar and Limehouse | | Delivery location | Not specified | ## CPV Codes ### 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 ### 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 ## Release History - 22 Feb 2022 at 17:45 - Tender - Tender Notice - https://www.contractsfinder.service.gov.uk/Notice/f005d99f-0f9c-4950-a1ce-d49f4ed9af65 ## Documents - https://www.contractsfinder.service.gov.uk/Notice/f005d99f-0f9c-4950-a1ce-d49f4ed9af65 22nd February 2022 - Opportunity notice on Contracts Finder - https://www.mytenders.co.uk/search/show/search_view.aspx?ID=FEB163827 NOTE: To register your interest in this notice and obtain any additional information please visit the myTenders Web Site at the link provided. ## Notice URLs - http://www.ofgem.gov.uk ## Provenance This Markdown file is an alternate public rendering of the D3 Tenders contract record. 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