A key element of the RIIO (Revenue = Incentives + Innovation + Outputs) price control period is Innovation. In order to incentivise Innovation, Ofgem has provided a Stimulus Package to assist Network Licensees in making Innovation part of business as usual.
The Package is made up of three elements:
Network Innovation Allowance (NIA) - to fund smaller innovation projects that can deliver benefits to customers as part of a RIIO-Network Licensees price control settlement
Network Innovation Competition (NIC) - an annual competition to fund selected flagship innovative Projects that could deliver low carbon and environmental benefits to customers
Innovation Roll Out Mechanism (IRM)
More information can be found here.