Commercial connections, innovation and whole system Stakeholder engagement event 26 th February 2019
Safety Moment Do we really look after ourselves and others at work? Do you recognise any of these scenarios • Walking past a hazard because you are late for a meeting? • Driving too close and too fast on company business? v • Ignoring a colleague who seems to be struggling because we don’t have the time to stop and chat? • Carrying our work without the correct amount of planning and communication • ‘making do’ with the wrong tool or item of equipment? • Cutting corners to get the job done? 2
Who are we… We are Scottish and Southern Electricity Networks, operating under license as Scottish Hydro Electric Transmission Plc (SHE Transmission) for the transmission of electricity in the north of Scotland. Other SSE v Businesses Scottish Scottish Hydro Electric Power Southern Electric Power Hydro Electric Transmission Distribution Plc Distribution (SEPD) Plc (SHE Transmission) (SHEPD) 3
What is RIIO-T2? RIIO ( R evenue = I ncentive + I nnovation + O utputs) v is Ofgem’s performance -based framework to set the price controls for Network Operators in the UK. 4
Changing Energy Landscape 14,000 homes in Scotland using coal for heat v 50% of all energy from Renewables in Scotland by 2030 10.5GW of renewables in Scotland 5
SHE Transmission’s Strategic Themes Stakeholder-led Safe and Secure Sector-leading Leadership in Strategy Network Operation Efficiency Sustainability v Taking a whole system Use data efficiently to Trusted partner of Integrated approach to approach to network understand, predict and customers and whole life development and operation and development get the best network communities, realising long operation, using risk-based to meet current and future performance term benefit for society, engineering to deliver value customers’ needs economy and environment 6
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Customer Connections Lauren Logan, Commercial Policy Manager
Objective for today Feedback from stakeholders to understand what matters to our existing and future customers during each stage of the customer journey. • Success during RIIO-T1 • Our Ambition for RIIO-T2 • What does this mean for you? • Your Feedback 9
Since 2010: • More than double the MW of generation connected o Now supports more than 6GW of renewables • Track record for “on time” delivery • Reported customer satisfaction >95% 12000 Gone Green 10000 Actual BEAULY DENNY Forecast 8000 6000 4000 2000 0 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 CAITHNESS MORAY 10
Connections Process focus during RIIO-T1 Process for Direct Connections Process for Embedded Connections 11
Connections Process focus during RIIO-T1 Early Engagement Flexible Solutions Commercial Innovation Pre-Application Meetings Bhlaraidh Wind Farm Connection Orkney Alternative Approach 12
LOOKING AHEAD TO RIIO-T2 AFFORDABLE BESPOKE OPTIMISE COLLABORATIVE 13
EMERGING THINKING The north of Scotland is essential to enabling a sustainable GB energy system Gone Green Actual Forecast Cost Limitation Local Optimisation Proactive Decarbonisation 16000 14000 12000 10000 8000 6000 4000 2000 0 14
PROPOSED AMBITION Provide tailored solutions and services for all our connection customers, that are also optimal for the Review Scoping wider GB energy consumer CUSTOMER EXPERIENCE 1. Tailored customer services and products for our existing and Energised Application future customers : from project scoping to re-powering we aim to provide the services and products that matter to our customers today and in the future throughout the lifecycle and duration of their connection with us Connecting 2. Optimal connection solutions: we will work with our customers to ensure that the tailored connection solution is optimal for their unique project economics and timescales, whilst ensuring Our ambition applies to each that it is also the optimal solution for the wider network and GB step of the customer experience consumer from pre-application to post- 3. Accessible connections process: your connection experience energisation should be simple, transparent, efficient and fit for the future 15
Evolving Connections Process Improvements to our online connections service Re-powering, re-design, Scoping Re-fresh de-energisation CUSTOMER Outages, Policy change, access EXPEREINCE forecast Efficiencies in application Energised Application Understanding your project, different options Connecting 16 Delivering the connection as desired
Connections Ambition 1. Tailored Connection service 2. Optimal Connection solution 1. Tailored Connections service 3. Accessible Process STAKEHOLDER-LED SAFE AND SECURE 2. Optimal Connections solution STRATEGY NETWORK OPERATION 3. Accessible Process Taking a Whole System Use data efficiently to Measure connections success based on approach to network understand, predict stakeholder feedback operation and and get the best development to meet network performance current and future customers’ needs CONNECTIONS v OPPORTUNITIES 1. Tailored Connection service 1. Tailored Connection service 2. Optimal Connection solution 2. Optimal Connection solution 3. Accessible Process LEADERSHIP IN SECTOR LEADING 3. Accessible Process SUSTAINABILITY EFFICIENCY Measure connections success based on Trusted partner of Integrated approach to Measure connections success based on customers and whole life stakeholder feedback stakeholder feedback communities, realising development and long term benefit for operation, using risk- society, economy and based engineering to environment deliver value 1 7
Ambition to keep improving the customer journe y Thank you for your valuable feedback but it doesn’t stop here …. • As part of RIIO- T2 we won’t only deliver solutions and services for our existing and future connection customers on feedback from the customers of today • To ensure our services and solutions remain optimal we will keep our plans to deliver optimal services up to date based on customer feedback and industry change We will commit to measuring the success of our ambition for RIIO-T2 throughout the duration of our next price control through customer feedback How will this success be measured? We want to know which parts of the customer journey matter to you so we can ensure we keep delivering 18
What do you think of our ambition for RIIO-T2 Project Scoping • What information and engagement (with us and other parties) would help you reach the application stage? Application • What service could we provide to make the application process more efficient for you? • What services could we provide to ensure the connection solution works for you? Connecting • What could we do to make sure your connection solution is delivered as desired? Energised • Once your energised we want to ensure our service continues, what services can we provide to ensure your project remains connected economically? Re-fresh • Thinking of re-powering or re-designing? What can we do to ensure your project remains efficient and economic? Feedback • We want to keep delivering for our customers throughout RIIO-T2, what parts of the connections customer 19 journey would you like us to be measured on?
Innovation Andrew Urquhart, Commercial and Innovation Manager
Overview • Innovation strategy development • Objective and definition • ‘You said . . . .’ ‘we did . . . . ’ v • Innovation framework • Focus areas 21
Innovation Strategy Development Stakeholder Stakeholder Engagement Event Engagement Event Nov 2018 Feb 2019 Stage 4 Stage 6 Stage 1 Stage 2 Stage 3 Stage 5 Completion DEFINE REVIEW APPRAISE GENERATE PLAN IDENTIFY SHE SHE Historic Innovation Potential Transmission Transmission Strategic Changing Innovation Trends and Innovation Innovation Plan Innovation Decisions Drivers Approach Themes Opportunities Values Stakeholder Engagement – Peer Organisations, Academia, Supply Chain, OEMs, Consultants, Users, Developers, Public Sector, Cross-Sector Stakeholder Engagement – Peer Organisations, Academia, Supply Chain, OEMs, Consultants, Users, Developers, Public Sector, Cross-Sector Backward-looking Forward-looking 22
SHE Transmission Innovation Objective and Definition Objective we aim to support the transition towards a clean energy economy, whilst maintaining high levels of reliability in electricity supply and ensuring energy remains affordable for all. Definition Identifying and proving new ways of working for the long-term benefit of our Customers, our Stakeholders and Ourselves 23
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