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Losses strategy

Download our 2023 Losses Strategy here

As part of our License Conditions, we maintain and regularly review our Losses Strategy. This is also important to ensure that our Strategy reflects our live policies and current approach to how losses should be managed.

We first developed a Losses Strategy in 2014 and have published regular updates in subsequent years. The cornerstone of our Losses Strategies has been the Sohn Associates-Imperial report, which gave 26 recommendations for NGED to act on to reduce losses. Since that document’s publication, we have reviewed all the recommendations and continue to actively consider the learnings from them.

The Strategy below covers RIIO-ED2 and will be reviewed on a regular basis to ensure that it remains accurate for this period.

Whenever we update the Strategy, we also publish our modifications and provide justification as to why these changes are beneficial. A Revision History section has therefore been added to the Losses Strategy itself to improve the tracking of changes over time.

The table below reflects the Revision History which can also be found in the Strategy itself.

Document Revision and Review Table
Date Modifications made Reason for and effect of modificationHow modification meets point 49.4
December 2023Document updated with NGED brandingNational Grid purchase of WPD has been completed and is now NGEDShows that strategy is up-to-date and offers reader clarity 
Document reviewed and updated with latest strategic thinkingReviewed and updated iteration which was last published in 2022Ensures that we have considered how to keep losses 'as low as reasonably practicable' and 'based on an up-to-date CBA'
Revision history added to document Modifications were previously stated on the website but by providing a Revision History in the document itself, we are able to better document the changes over time. As it develops, the Revision History will show how we are keeping losses 'as low as reasonably practicable' as well as any changes to our CBA.
New sections on Net Zero, Flexibility, Policy and ActionsProvide a greater amount of context and to make it easier to understand how and why particular actions have been taken.Ensures that we are thinking holistically about how sector changes may affect our work on losses.