The CEG meeting in August focussed on the costs associated with all aspects of the business plan. A full day was spent reviewing operating and capital costs, and the major pipe replacement programme (Repex) which accounts for around 40% of all costs.
The engineering justification and cost benefit analysis methodology was discussed and the major drivers for the costs were explored. The group sought to establish how efficiencies from GD1 are being embedded, what savings are being made from previous innovations and new operating and management systems. An important part of this deep dive exercise was to establish the impact and benefits customers would derive from different areas of expenditure. An ongoing function of the group is to scrutinise customer and stakeholder views on the major areas of expenditure and we look forward to seeing further details on that from NGN’s stakeholder engagement plan reports.
The meeting was held at NGN’s InTEGReL site at Low Thornley. We learned about NGN’s partnership approach and plans for this site to test and trial new products that will help decarbonise our gas, electricity and transport systems as part of their ‘whole of systems’ programme.
The CEG also agreed a way forward in producing its report to Ofgem in December; considered an enduring role for the group into RIIO 2; and agreed key messages for the Chair to feedback to GEMA at a forthcoming review session.