May 3, 2023 energynetworks.org •1
The SoC Project
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION
PRESENTED BY ANDREW NEVES – DCMF CHAIR
Implementing a common methodology
May 3, 2023 energynetworks.org 2
Overview
• Collective Licence Modification Proposal Issued
• DNOs have until 29th October to object • Notwithstanding this, aggressive project
timescales demand total commitment
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
May 3, 2023 energynetworks.org 3
Requirements for success
• Resources (DNOs, consultants, stakeholders, Ofgem)
• Cooperation, commitment and pragmatism• Early clarification of issues registered• Quick ‘minded to’ guidance from Ofgem
when needed• Milestones for deliverables must be met
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
May 3, 2023 energynetworks.org 4
DNO joint work to date
• DNOs agreed to start joint working without prejudice to their decisions on CLM
• DNOs developed an outline project structure • DNOs started a register of issues requiring
clarification
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
May 3, 2023 energynetworks.org 5
Seven DNO groups working together
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION
ENA Regulation Group
Common MethodologyImplementation Working
Group (CMIWG)
EHV Load Flow and LRIC Work-stream
DRM Yardstick Model Work-stream
(including LRIC integration)
Tariff Structures and Application
Work-stream
Ofgem
DCMF andStakeholder Consultation
Consultants
Outline project structure – methodology
May 3, 2023 energynetworks.org 7
CMIWG structure
• Chair (DNO appointment)• Project Manager• DNOs• Ofgem• Stakeholder representatives (one
representative each for: generators, suppliers, IDNOs, Consumer Choice, large users)
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
May 3, 2023 energynetworks.org 8
Methodology work streams
EHV Load Flow and LRIC Work-stream• Definitions and clarifications (power flow modelling itself not part of common approach)• Feed into CMIWG and into consultants’ development of the template• Engineering and commercial representatives from DNOs, with stakeholder engagement as
needed
DRM Yardstick Model Work-stream• Definitions and clarifications and best practice• Feed into CMIWG and into consultants’ development of the template• Commercial representatives from DNOs, with stakeholder engagement as needed
Tariff structures and application• Seek commonality where feasible• Feed into the CMIWG and into LRIC and DRM work streams• Commercial representatives from DNOs, with stakeholder engagement as needed
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
ENA Regulation Group
Governance Working Group
(GWG)
Ofgem
DCMF andStakeholder Consultation
Outline project structure – governance
May 3, 2023 energynetworks.org 10
GWG structure
• Chair (DNO appointment)• DNOs• Ofgem• Stakeholder representatives (one
representative each for: generators, suppliers, IDNOs, Consumer Choice, large users)
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
May 3, 2023 energynetworks.org 11
Next steps
• DNOs meeting with Ofgem to discuss implementation later today • DNOs identifying CMIWG Chair and
Project Manager• DNOs firming up work-stream structures
and personnel• Ofgem appointing consultant
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION
May 3, 2023 energynetworks.org •12
The SoC Project
A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION
PRESENTED BY ANDREW NEVES – DCMFCHAIR
Implementing a common methodology