Ofgem’s Project TransmiT – An Overview Hannah Nixon Partner, Smarter Grids and Governance Stakeholder Event, Glasgow 30 June 2010
Project TransmiT • What is Project TransmiT? • What has been done so far? Welcome! • Next steps • What we need from you • Objectives and agenda for today We are committed to conducting a transparent and open review. Your views are essential. Genuine engagement and collaborative working is the key to success 2
What is Project TransmiT? • An independent and open review of transmission charging and associated connection arrangements • Aiming to facilitate timely transition to low carbon energy sector while continuing to provide safe, secure, high quality network services at value for money to existing and future consumers • A direct response to the challenge of efficiently delivering the low carbon economy and continued security of supply 3
What has been done so far? • Closed in November – we received over 60 responses from a Call for Evidence wide range of stakeholders. • We held a well-attended event in Birmingham in November 2010 Stakeholder 2010, engaging stakeholders in roundtable discussions on event the scope of our review and issues to be resolved. • We have held one-to-one sessions with stakeholders to seek One-to-ones feedback. • We appointed four independent academic teams (from Exeter, Strathclyde, Cambridge and a US consortium) to Academic input consider an optimum charging model for GB. • We held a roundtable discussion in March 2011 on the views 2011 academic contained in the draft reports of each academic team. Final event reports were published in May 2011. • CEPA provided a review international charging models. Prof. Consultants’ review Ekins (UCL) provided a peer review of the academic work. • Timely connection: Output measures developed under RIIO Connection • Working closely with industry to develop CMP192. arrangements Views expressed: Acknowledgement some form of cost-reflective charging is appropriate, but questions about form and level. 4
Next steps • 27 May open letter confirmed our work will focus specifically on potential changes to the TNUoS charging arrangements. • We are aiming to develop appropriate changes that can deliver benefits to consumers from April 2012. • We propose to launch a SCR to take forward our charging work. We recognise that This is only April 2012 is an achievable if we are ambitious and all fully committed to challenging timetable making it happen over with implications for all the coming months. of us. 5
What we need from you Participation in Ofgem-led working groups to help us identify the • detail of practical changes to TNUoS charges A derogation from default CUSC timescales on the publication of • tariffs NGET to publish multiple draft tariffs on 31 January 2012, with a • view to confirming the accurate tariffs once we approve an approach With your support this can be done ... • ... but we do not want to commit to an unrealistic timeframe • • Therefore seeking industry views on whether this is achievable 6
Objectives of today’s event • To build on the information provided in our 27 May consultation. • To set out in more detail and seek views on the potential options for change to the TNUoS arrangements in the shorter term. In particular: – To ensure that all the issues raised are given due consideration. – To inform of the way in which we may progress this work. – To seek views on how to ensure collaborative working – To seek views on the timetable • To provide an opportunity for us and others to hear your views on what we need to consider as we deliver TransmiT. 7
Agenda of today’s event Time Content 1400-1420 Welcome and overview (Ofgem) 1420-1450 Further thinking and way forward (Ofgem) 1450-1510 NGET perspective and discussion of broad technical options (NGET) 1510-1525 Coffee break 1525-1615 Break out session: Kick-off working group thinking 1615-1650 Q&A from the floor 1650-1700 Next steps (Ofgem) 1700 Close Please make the most of today’s event and tell us your views and experiences! 8
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