OFGEM DNO BUSINESS PLAN

One particular area of dispute is around the potential savings from the smart meter rollout and smart grid solutions. However, it is important this balance is right to ensure investment to maintain secure and reliable supplies. Ofgem boss slams EU data protection rules. What to read next. This site uses cookies for essential functionality, performance and analytics, and marketing including behaviour advertising. Water industry cannot afford delays to protect supply. In a carefully worded statement, the ENA said:

DNOs are left to determine this combination themselves. The DNO cost savings should be passed on to consumers who are investing in the rollout. The disagreement here centres on when the benefits of smart meters will be realised, and how far DNOs can rely on effective partnership working. DNOs are privately saying these savings are over-stated. DNOs have been sceptical about the benefits of the rollout since it was decided that suppliers should lead it — a different model to the location-by-location approach led by networks in other countries. In a carefully worded statement, the ENA said:

When the draft determinations landed, SSE shouted the loudest. Request a call back. The draft determinations include a six per cent cost of equity, lower than ofgek.

RIIO-ED1: Ofgem challenges DNOs to shave £1.4bn from eight-year business plans

The company, which has seen a 6. DNOs are privately saying these savings are over-stated.

ofgem dno business plan

For Ofgem, the potential savings form the smart meter rollout and smart grids are a welcome boon as it seeks to exert what little control it can over spiralling energy costs, and offer consumers a speedy return on investment. Ofgem says the companies have failed to take proper account of these savings: In a carefully worded statement, the ENA said: This has provoked what counts as a storm of outrage in the polite world of regulated utilities.

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For DNOs, they remain a possibility on the horizon, with much of the control of the smart meter programme and its potential benefits out of their hands. DNOs are left to determine this combination themselves. This site uses busineess for essential functionality, performance and analytics, and marketing including behaviour advertising.

The second set of savings arise from using the benefits of smart grids in other ways across the business. In addition to the smart meter savings, Ofgem identifies two sets of savings from smart grid solutions.

Marek Majewicz, interim dnl director, Bristol Energy. One particular area of dispute is around the potential savings from the smart meter rollout and smart grid solutions.

As dnk get underway ahead of the final determinations in November, these opposing views will have to be reconciled. The completion of the rollout of smart meters is planned for — five years into the eight year ED1 price control. While companies would normally chafe at their regulatory settlements, there are quite specific disagreements about whether the DNOs can achieve the cost savings Ofgem has demanded. Two of the companies have openly spoken of their disappointment at the proposed settlements, and others are muttering behind the scenes.

ofgem dno business plan

Ofgem insists the benefits of the rollout should be passed back to consumers as soon as possible, ie within the ED1 period. Again, DNOs are more cautious. What to read next.

The disagreement here centres on when the benefits of smart meters will be realised, and how far DNOs can rely on effective partnership working. DNOs have been sceptical about the benefits of the rollout bsuiness it was decided that suppliers should lead it — a different model to the location-by-location approach led by networks in other countries. DNOs, it said, have bid for just 14 per cent. You can control the non-essential cookies in your browser settings and using the 3rd party links.

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RIIO-2 Business Plans Draft Guidance Document

Moreover, Ofgem believes that DNOs will see significant cost benefits through aspects of the rollout which are beyond their control, through partnership working with suppliers. However, it is important this balance is right to ensure investment to maintain secure and reliable supplies. The DNO cost savings should be passed on to consumers who are investing in the rollout. The smart meter rollout will bring significant benefits directly to consumers as well as cost savings to DNOs.

Water industry cannot afford delays to protect supply.

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Companies will be assessing all the factors in their Draft Determinations as part of their ongoing dialogue with Ofgem to better businesz the final decisions on investment. The industry is more cautious, suggesting that the bulk of the benefits will come later, in ED2. Ofgem boss slams EU data protection rules.