Month in review: June 2013

June saw a number of related, and often highly publicised, developments around capacity markets and renewables that will encourage those advocating smart grids to redouble efforts to persuade stakeholders that smart grids should be kept at the top of the energy agenda.

These developments come at a time when Britain has to navigate the difficulties of a more intermittent power supply and tackle the capacity, carbon and flexibility challenges that it is likely to face in the future. Read more of this post

Ofgem seeks views on DNO business plans for RIIO-ED1

Ofgem is currently seeking stakeholder views on electricity distribution companies’ (DNOs) business plans for the next electricity distribution price control (RIIO-ED1) to help inform its assessment of those plans. DNOs have already submitted those plans to Ofgem and published them on their own websites.

RIIO-ED1 is the first price control review for the electricity distribution sector to be conducted under the new RIIO model (Revenue = Incentives + Innovation + Outputs). It will set the outputs which DNOs need to deliver, and the revenues which they will receive, for an eight-year period beginning on 1 April 2013. For further background see the related blog article: Ofgem publishes Strategy Decision for RIIO-ED1 (March 4, 2013).

Any DNOs that are deemed by Ofgem to have very high-quality business plans will be “fast-tracked”, which means that their price control will be agreed around nine months ahead of the other DNOs and over a year ahead of implementation.

Key questions highlighted in the consultation include the extent to which respondents believe that DNOs have adequately considered the potential efficiency gains from the adoption of smart solutions, including demand side response (DSR) and other aspects of the business plans that are likely to be of interest to those with a focus on smarter grids. Read more of this post