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Energy Networks Association

Energy Networks Association. RIIO-ED1 Update for Suppliers December 2012. ENA members. Agenda. Last meeting covered the background to the RIIO- ED1 price control review, the initial timetable and the key elements in relation to price certainty This meeting will provide an update on

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Energy Networks Association

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  1. Energy Networks Association • RIIO-ED1 • Update for Suppliers • December 2012

  2. ENA members

  3. Agenda • Last meeting covered the background to the RIIO- ED1 price control review, the initial timetable and the key elements in relation to price certainty • This meeting will provide an update on • Where we are in the process • The Ofgem strategy consultation document published in September • The timetable and key milestones going forward • A proposal to set up a series of supplier/all DNO meetings at key parts of the process to agree how information can be shared across all suppliers at a single forum

  4. RIIO - ED1 timetable

  5. Strategy document update • The document sets out Ofgem’s proposed approach to the next electricity distribution price control (RIIO-ED1) which will run for eight years from 1 April 2015. The document; • Focusses on meeting the challenges of delivering a low carbon, sustainable energy sector while maintaining business as usual • Consults on outputs • Sets out the core elements of the price review framework • Sets out the requirements for DNOs’ Business Plans • Specifically in relation to revenue profiling and charging volatility Ofgem set out; • A timetable that ensures that business plans are submitted nearly two years in advance of the commencement of the price control review to give visibility of the materiality of any changes • Seek views on whether this is adequate or whether further steps are needed • In October 2012 Ofgem also published their conclusion on mitigating network charging volatility arising from the price control settlement proposing the following is built into RIIO-ED1 • Improved information for suppliers • Restricting the frequency of intra-year charge changes • Increasing the lag on recovery of incentive reward/penalties and for some uncertainty mechanisms

  6. Supplier key milestones 2013 • February 2013 • – Strategy decision published which will include • Form of the business plan • Financing assumptions • Details of incentives • Details of uncertainty mechanisms and triggers • July 2013 • Submission and publication of Business Plans • October 2013 • Initial assessment of business plans and publication of fast track Initial Determination

  7. Supplier engagement proposal • ENA propose to facilitate three workshops in 2013 for suppliers at key points in the process - all DNOs will be represented • Timing • Early February • Ofgem decision document on charging volatility • Feedback from DNOs on the strategy consultation and impact on business plan development • Supplier feedback/expectations • Early May • Feedback from DNOs on the strategy decision and impact on business plan development • Supplier feedback/expectations • Early August • Business Plan submission and publication • Supplier feedback • This will be in addition to individual DNO engagement with suppliers and other stakeholders • Further workshops will be arranges if required

  8. Questions • Does this cover what is needed ? • Are the timings correct ? • What is the best forum ? • Separate seminar organised by the ENA • Separate session at the DCMF • How do we ensure all suppliers are invited ? • ERA for large suppliers • Small suppliers

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