Whilst we are pleased with some decisions in the framework document, such as transition to CPIH Consumer Price Index including Housingand withdrawal of the proposal to cap returns, there remain areas that we will continue to discuss with Ofgem in the coming months.
He advised GDF SUEZ Branche Infrastructure on developments in the European market the gas target modelon approaches to addressing the increasing requirements for flexibility on the French network, and riio t1 business plans network tarification throughout Europe. We have also been listening to the nearly companies who make up our direct customer base - the organisations that pay us directly for using our gas and electricity transmission networks - to understand what they need from us in the future and where we can improve our service to them.
For example, we believe the cost of equity remains too low. We identified the following implementation issues that resulted in added returns for network companies in RIIO We draw an important distinction between risks during each price control period and risks ahead of the control period i.
What does this mean in practice? CEPA has not independently verified the data provided by Ofgem nor the statements made by the network companies.
This re-shaping will continue to present new challenges as the decarbonisation agenda progresses in transport and heat, smart technologies enable more automation and unlock new possibilities, and technology enables increased consumer interaction - all requiring intelligent, flexible and secure networks to enable a connected future.
Network infrastructure and system operation will play a crucial role in delivering a low carbon future for the UK, continuing to provide secure, reliable and resilient energy supplies to homes and businesses, representing good value for money for bill payers. Contact the team for further information on the services we can provide.
However, we were disappointed not to receive funding for the compressor works, and we are now reviewing our approach to meeting the required environmental obligations. Your business needs a strong plan that sets out what you want to achieve, how you'll do it, and what you'll get out of it.
Our analysis suggests that the fast-track incentive is more likely to result in net benefits to customers in sectors where there is greater comparability between network companies, 5 as it is more likely to incentivise the companies to compete against each other to be fasttracked.
Customers and other stakeholders reasonably expect that network companies would only earn additional returns if they deliver exceptional performance.
No matter how long you've been in operation, your business needs a plan. The RIIO framework is an enabler of this, and will need to ensure that consumers continue to benefit from high levels of investment, encourage companies to innovate, drive efficiency to lower costs and continue to improve services.
Energy networks agree that the unique economic environment necessitates a rethink of the cost of capital. WPD argues for the retention of an eight year price control, saying: How to drop a line subject area untruth and ideate if.
Ofgem would need to address these issues in future price controls to provide customers with confidence that the charges they pay for network services reflects efficient costs. It has enabled earlier and faster development of new techniques and technology than would have been the case without the stimulus and given the platform to encourage deployment of these within companies.
It also helps determine whether a business idea is. Opinion is divided on whether the fast track option included in RIIO1 should be continued to RIIO2 — and it is no surprise that WPD, the single company fast-tracked last time round, should support the model.
When discussing options for the length of the control period we also cover risks ahead of the price control period.
In conducting our review, we have relied primarily on data collected by Ofgem from the network companies. By Amy Fontinelle The purpose of a business plan is to explain in writing what your business idea is, why it is needed in the marketplace, how it will succeed and.
Past successes and future challenges It is a good time to reflect on what networks have achieved working together under the various regulatory frameworks.Appendix A NTS NGN Capacity Interaction.
Northern Gas Networks nationalgrid THE POWER OF ACTION Consideration of mutual efficient trade-offs NGN's RIIO-GDI business plan and NG NTS' RilO-T1 business plan th 7 November Overview Northern Gas Networks Ltd (NGN) and National Grid NTS (NG NTS) are mutual stakeholders in each other's.
Transmission RIIO-T1: Distribution RIIO-ED1: Capex forecasts: Transmission ~ £20bn Distribution ~£14bn • Does NOT include smart meter programme ‘Smart’ capex on Distribution Network RIIO-ED1 ~£1 bn RIIO-ED2 forecast ~£bn Network Operator Business Plans.
original business plan on customers’ bills was an increase of thirteen pence in the annual charge per customer in each year of RIIO T1. Our updated business plan will result in an annual increase to customer bills of approximately ten pence.
Our business plans require equity injection of £M supplementing an. The RIIO framework has helped us deliver on this: In RIIO-T1 so far, National Grid has generated nearly £m of savings for bill payers by being quicker and more efficient in the way we work.
A RIIO review still takes two years, except for companies that are “fast tracked” for providing good business plans Source: Ofgem, RIIO Handbook, Outputs may be “primary” (see figure) or “secondary”: – managing network risk; – projects for delivering primary outputs in future periods; and.
Most recently strategic development of the Transmission Business plan submission (RIIO-T1) and Distribution Business plan submission (RIIO-ED1) to the industry regulator, Ofgem, as part of the price control review process up to Title: Business IT Transformation .Download