Firstly, I should explain the change in the CEG’s name/remit and branding.
Ofgem issued its decision on the Framework for Energy Network Regulation in which it proposed the new name of Independent Stakeholder Group (ISG) to replace the Distribution company CEGs and Transmission company User Groups. ISGs have been mandated for the forthcoming price control period – RIIO-3.
Whilst Ofgem outlined that the groups would have a similar remit to the CEGs there will be further guidance issued this quarter on the expected outputs for the new groups, whose role will be enduring throughout the price control period. So whilst we have changed our name, our terms of reference will only be updated once we see Ofgem guidance.
At our meeting in December, we welcomed a new member, Phil Broom who has experience and a deep understanding of network regulation and brings a range of skills relevant to our work. His details are on the ISG website.
The group learned more about the business planning processes NGN is using and we have now been able to map our own work programme against this and the timescales that Ofgem have set out for producing draft proposals and the final plan.
We learned from Mark Horsley in his regular business update that the proposed hydrogen village trial would not be going ahead in Redcar due to their being insufficient hydrogen production available for the trial. The ISG will be following NGN’s exit strategy and the legacy of the engagement with the community in the town.
We had a deep-dive into the company’s workforce resilience plans and its stakeholder engagement strategy.
The group has reverted to monthly meetings and is scheduling a greater number of deep-dive sessions with business leads
At our January meeting we welcomed another new member Andy King who brings with him a wealth of knowledge about sustainability and the environment. The group is now at its full complement of 10 members reflecting the backgrounds and skills we will need to scrutinise NGN’s business plan for 2021-26 and its ongoing engagement with stakeholders to develop and deliver RIIO-3 outputs and outcomes. 4 of the 10 members, including myself as Chair, were appointed for RIIO-2. It was important to refresh the group whilst not losing all of the insights and learning from planning for the current period.
Topics for the January session included NGN’s initial response to the Consultation Ofgem issued on the Sector Specific Methodology (SSMC) applying to RIIO-3. As well as taking an overview of how the changes Ofgem is proposing to simplify the RIIO framework will work across the business, we looked specifically at how NGN was shaping its response to the output areas for customer service and vulnerability.
The ISG also requested a presentation on how stakeholder insights during RIIO-2 have been triangulated and how they are being used to shape decision making for the new business plan.
Whilst we are mostly focussed on the next price control period, we are also continuing to monitor how NGN is meeting its current commitments. We sought further information about the difficulties NGN and other GDNs are having in souring suitable low emission fleet for emergency and maintenance fleet. There appears to be no suitable electric vehicles that would guarantee NGN can meet its statutory timescales for attending gas escapes. We have asked that this is addressed on an industry level and with government.