Eight year price controls will include a limited window re-opener after four years to review the price controls and other mechanisms to manage uncertainty within the control period. These scenarios are set out in Appendix A2. That vision is being achieved. This section explains how NGN has and will continue to use innovation.
These will enable us to identify the new technology, commercial arrangements, processes and services which will be required to address them. RIIO will be used to regulate and develop future price controls for gas and electricity transmission and distribution network companies.
Modelling analysis Appendix C: We have illustrated that suppliers charge an insurance premium for managing the risk of network charges rising. Safety performance has reduced to record low levels the number of people injured in our network. Ofgem is proposing to apply mechanisms for managing uncertainty that will allow the network companies allowed revenue and therefore network charges to change within the price control period.
Our business plan has earmarked up to million per year for capital expenditure on the replacement and development of our asset infrastructure; a similar sum is estimated for operational activities associated with the day-today running of its business.
How might it affect volatility of charges. Impact on consumers depends on the implementation and predictability of the trigger. By bringing asset services and asset management and ownership together under the singular management of NGN, it has been possible to establish the new approach TCOand to deliver the holistic approach to asset stewardship which is required to meet increasingly complex challenges and cost pressures over the next decade.
Suppliers employ tariff structures to recover the supply costs of energy. We remain committed to consistently achieving a top two level of performance in the customer service surveys.
Cost of debt indexation NWOs revenue allowance will be adjusted mechanistically each year. Consequently, this function is responsible for identifying the overall scope of work to be delivered across the network. Section 3 discusses Ofgem s price control proposals.
The role of gas distribution will change as the UK transitions towards a low carbon economy, but we believe that gas has a significant role to play in the future energy mix. One of the key issues Ofgem is consulting on is the framework for dealing with uncertainty in the price controls.
The principal contribution we can make to improve the environment is to reduce leakage from our network. Typicallyy the lack of condition dataa has been a major obstacle to carrying out a comprehensive assessment of proactive asset management programmes.
Longer cap plans typically have slightly higher prices but also offer greater security to consumers. A deeper approach to asset management using health indices. Our analytical framework is summarised in Figure E1 below. These would apply top-down across network companies price control frameworks.
Provision allowing for a specific part of the company s revenue allowance to be reviewed and potentially adjusted during the price control if and when specified conditions are met. Wider reinforcement mechanisms Would depend on the mechanism adopted.
We must attract the investment which is essential to finance the business and balance the requirements of customers. We hold ISO certification.
The use of uncertainty mechanisms that allow network companies allowed revenue to change within the price control period will arguably now increase the future volatility and unpredictability of network charges in the absence of counteracting measures.
Section 5 concludes with next steps and proposals.
A variety of technology-led solutions. CEPA has been asked by Centrica to review Ofgem s proposals and to consider the options for providing more predictable network charges over the forthcoming energy network price controls.
Understandably, these mechanisms have been developed as network companies face different types and categories of risk across their business. We have a strong track record in delivering our commitments to customers and have an industry leading performance which will continue to provide a value or money service throughout the RIIO-GD1 period.
Ofgem as the sector regulator also faces informational uncertainty about required expenditure and forecasts which may need to be managed differently depending on the circumstance. The ongoing obligations are effectively your duties and responsibilities in relation to you, your property and your heating system.
You must comply with these responsibilities in order to continue to receive payments and avoid other enforcement action. It was also recognised under SGN’s RIIO GD1 Final Proposals that the costs of operating the SIUs in the longer term are unknown, and that Ofgem would seek the views of SGN for options to deliver an enduring solution to the SIUs in the longer term and following the closure of Avonmouth in 2.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since Table of contents.
Figure Annual repex plans under RIIO-GD1, by GDN, ; Figure Forecast total capex and repex during RIIO-GD1, //21. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. Easily share your publications and get them in front of Issuu’s.
of stakeholder input into the RIIO GD1 regulatory process for the /21 period, there is a growing need for a systematic approach to the methodology for: Identifying stakeholders. Engaging with stakeholders. Determining their needs.
Influencing the organisation‟s plans to satisfy their needs. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online.
business plans’ brochure produced. In RIIO-ED1, we are.Riio gd1 business plans