Utility Week highlights the key areas of debate.
Blog In our fourth blog, we review what simplifying the price control means, and the changes the industry faces.
Ofgem launched the framework review for RIIO-2 earlier this year which marked the beginning of the consultation process for setting price controls for the network companies running the gas and electricity transmission and distribution networks in the UK.
On the 30th June, Ofgem announced the results of the consultation which focussed on the following areas: Strengthening the consumer voice Responding to changes in how networks are used Driving innovation and efficiency Fair returns and financeability The main changes as a result of the framework decision are: Simplifying price controls to encourage solid business plans In the next round of price review, RIIO-2, there is a commitment from Ofgem to simplify price controls.
We believe arrangements to encourage good business plans can be simplified and removed in some cases. We believe the process of annual reporting can be simplified and we want to take steps to improve reporting.
Simplifying price controls in RIIO-2 means additional features will be adopted to protect consumers from undue risk. This signals that Ofgem still intends to capture and incentivise the efficient delivery of activities that energy network companies undertake.
There is recognition that in a changing environment and because the costs are significant, consumers need to continue to receive the right network services and the RIIO framework accounts to protect consumers and investors, although adding to the complexity of the network control.
There is a clear signal to industry of Ofgems broad direction of travel, and that incentives on outputs and costs will only reward companies for genuine performance improvement.
What does this mean in practice? Simplifying the price controls is an area that directly impacts network companies and highlights clear stipulations as part of their licence commitments.
A summary of the key areas includes: These relationships have allowed Explain to develop an in-depth understanding of the importance of consumer and stakeholder engagement, ensuring we engage with the end user to deliver insights that support and are aligned to business planning.
You can be confident that our advice will be impartial, open and focused on delivering robust insight to support business planning throughout RIIO-2 Bespoke solutions: Offering a range of research methodologies from the traditional to the innovative, always focussing on the best approach to deliver robust insights ensuring we engage with the end user Business planning experience: With experience of customer and stakeholder engagement in the water and utility sector through RIIO-1, PR09, PR14, and most recently PR19 we are adept at engaging with customer and challenger groups, alongside core customer research to ensure we deliver representative results Research that unlocks insight: Delivering a range of research solutions through a mix of methodologies to deliver insights including: The findings focus on the future of customer engagement in the utilities sector and innovation in the market research sector to future proof and provide solutions to engage with customers.
Contact the team for further information on the services we can provide.New thinking: The RIIO EDI Review: Just how successful is RIIO?
The RIIO EDI Review: Just how successful is RIIO? Helen Poulter, IGov Team, 6th June and in part they decide on this from the costs in the various proposed DNO business plans. If Ofgem deems a DNO business plan to be realistic and well-designed (i.e.
a business plan, and. Our business plan. Sections. Headlines. Energy Spectrum Ireland provides insightful and timely reporting and comment on developments in the wholesale and retail gas and electricity markets in both the Ireland and Northern Ireland.
The package consists of two publications designed to ensure you can stay ahead of the game without taking valuable resources away from your core business.
In July , Ofgem asked the remaining five network companies to reduce their draft RIIO-ED1 cost plans for April by £bn. 23 Ofgem considered that the network companies could find more efficiencies, particularly from smart grids.
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These preventative steps to . Western power distribution riio ed1 business plan, SA Uncertainty. RIIO-ED1 WPD Business Plan. Ofgem (Office for Gas and Electricity Markets), who will use the information to determine allowed. View Kelvin Hui’s profile on LinkedIn, the world's largest professional community.
for example amending Ofgem’s guidance for suppliers, whilst engaging with industry stakeholders for statutory consultations and writing responses to government consultations. Analysis of distribution network business plans for the RIIO-ED1 and GD1 Title: Senior Analyst - Electricity .