Making Innovation Count - A Transparency Review of NIA and SIF Projects
Making Innovation Count - A Transparency Review of NIA and SIF Projects 3.66 MB
Supplementary data: https://docs.google.com/spreadsheets/d/10CuK8ZTUuSzBFH9wUDFbZ9ywUOxfOvP97q2BasdJjIs/edit?usp=sharing
How Transparent Are the UK’s Energy Innovation Projects — and Why It Matters for Consumers
Over £727 million has been committed through Ofgem’s Network Innovation Allowance (NIA) and Strategic Innovation Fund (SIF) to help accelerate the UK’s transition to a cleaner energy system.
It’s an impressive investment, but 90% of this funding comes directly from consumers’ energy bills. That means transparency isn’t optional; it’s essential. Consumers deserve to know whether their money is delivering results.
We reviewed 75 NIA and SIF projects, assessing how clearly network companies report on objectives, funding, progress, and outcomes. The results were a mixed picture.
What We Found
Objectives and outcomes Most NIA projects (95.5%) clearly define their aims, but some never confirm whether those aims were achieved. For SIF, the picture is weaker: only half of completed projects report on outcomes, largely because the reporting template doesn’t require them to compare results against original goals.
Project benefits Over one in five NIA projects fail to explain the value they deliver. SIF projects — particularly those completed after 2022 — perform better, with benefits defined in measurable terms.
Next steps and implementation Over 60% of completed NIA projects provide vague or incomplete next steps, raising questions about whether their work will be used. SIF projects are generally more consistent, with discontinued projects often explaining clearly why they were closed.
Lessons learned All NIA projects include lessons learned, but only a small share offer insights that are specific and transferable. For SIF, only Alpha and Beta projects must report lessons learned — and not all do so effectively.
Financial transparency Just 40% of NIA projects include a breakdown of costs or funding sources. SIF projects are stronger here: all report total funding, and most provide detailed breakdowns.
Stakeholder engagement Seventy percent of NIA projects report no engagement activity. Many SIF projects also leave out key details such as who was engaged, the purpose, and when.
Documentation Only one-third of recently completed NIA projects included the required net benefits statement, raising compliance concerns. SIF documentation is generally better, but gaps remain — including missing reports and confusion over templates.
Visibility Some projects are still listed as “live” long after their end date. The ENA Smarter Networks Portal, meant to host this information, is hard to navigate and lacks clear status tracking.
Why It Matters
Transparency is not a tick-box exercise. Without clear, consistent, and timely reporting, it’s impossible to know whether innovation funding is delivering value for money. Gaps in documenting benefits, outcomes, and implementation risk are eroding public trust and slowing progress towards net zero.
Consumers fund most of this work. They have a right to see evidence that their money is improving reliability, affordability, and decarbonisation.
Our Recommendations
Network companies should adopt structured reporting formats that indicate whether projects will be implemented, developed, or closed, along with the reasons for these decisions. They should keep full records of engagement, including what was done, when, with whom, and for what purpose. They should report both qualitative and quantitative benefits and submit close-down reports promptly after completion.
Ofgem should strengthen oversight and conduct routine quality reviews. It should provide clear guidance and examples of best practice reporting, require comparison of final outcomes to original objectives, and mandate timely submission of final reports.
The Energy Networks Association should utilise consistent status categories, such as “Completed” or “Discontinued,” and incorporate visual timelines. Additionally, it should make key documents, including cost and engagement data, easily accessible and downloadable.
Transparency is not just about accountability; it is also about learning and growth. When costs, results, and lessons are clearly documented, successful approaches can be repeated, mistakes avoided, and innovation accelerated. Consumers are paying for progress. It is only fair that they can see exactly what they are getting