22nd April – ISG Blog
This month the ISG met in person at NGN’s head quarters at Thorpe Park Leeds.
Our focus was on the three topics of Innovation; Environment; and Future Energy.
As usual we heard first from the Chief Executive who shared his insights into how the company was performing under RIIO-2 and planning for RIIO-3, and we were reassured that there remains a strong focus on delivering current commitments whilst preparing for the next price control period.
We met the newly appointed head of Innovation who is undertaking a strategic review of innovation and how it is governed and managed across the company.
We welcomed this refresh and will be reviewing the new draft strategy over the summer to ensure it addresses our concerns around stakeholder engagement and outcomes.
Good progress is being made to meet most of NGN’s environmental commitments – but we have challenged NGN to introduce as soon as possible a tool to accurately measure gas (methane) escaping from its pipes rather than rely on modelling.
We also remain concerned about the lack of progress in replacing operational vehicles with electric vans (only Cadent appear to be meeting their targets) NGN is working with a group of partners to seek to understand the implications of decommissioning the gas network and how costs might be affected for current and future customers.
This is important and essential work which will help stakeholders understand the implications of decisions about future Net Zero pathways. We encouraged NGN to open up its findings once these are validated to engender discussion about how to deal with any issues in GD3 and beyond.
Other recent work by the Group has included a subgroup session on data and digitalisation; attending a Customers in Vulnerable Situations workshop; and observing the Citizen’s Panel and Young Innovators Council to hear their priorities for RIIO-3.
Additionally the Chair has met with the Chairs of the other ISGs who are all now actively engaged in Ofgem’s RIIO-3 business plan consultation and seeking to share insights and reach a common view on how stakeholder needs should be considered.
Production of our annual report for 2023-24 is underway and we hope to share this with all of NGN’s stakeholders by the end of June.
Next month the group will be looking at the company’s track record of performance as the basis for deliverability of its proposed new business plan.
We will also be scrutinising the related topic of workforce resilience.
And finally we will be scrutinising our own effectiveness against the 4 key criteria we set ourselves to demonstrate whether our work is making a difference in the interests of stakeholders and customers.