May 3, 2023 energynetworks.org •1

The SoC Project

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION

PRESENTED BY ANDREW NEVES – DCMF CHAIR

Implementing a common methodology

May 3, 2023 energynetworks.org 2

Overview

• Collective Licence Modification Proposal Issued

• DNOs have until 29th October to object • Notwithstanding this, aggressive project

timescales demand total commitment

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

May 3, 2023 energynetworks.org 3

Requirements for success

• Resources (DNOs, consultants, stakeholders, Ofgem)

• Cooperation, commitment and pragmatism• Early clarification of issues registered• Quick ‘minded to’ guidance from Ofgem

when needed• Milestones for deliverables must be met

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

May 3, 2023 energynetworks.org 4

DNO joint work to date

• DNOs agreed to start joint working without prejudice to their decisions on CLM

• DNOs developed an outline project structure • DNOs started a register of issues requiring

clarification

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

May 3, 2023 energynetworks.org 5

Seven DNO groups working together

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION

ENA Regulation Group

Common MethodologyImplementation Working

Group (CMIWG)

EHV Load Flow and LRIC Work-stream

DRM Yardstick Model Work-stream

(including LRIC integration)

Tariff Structures and Application

Work-stream

Ofgem

DCMF andStakeholder Consultation

Consultants

Outline project structure – methodology

May 3, 2023 energynetworks.org 7

CMIWG structure

• Chair (DNO appointment)• Project Manager• DNOs• Ofgem• Stakeholder representatives (one

representative each for: generators, suppliers, IDNOs, Consumer Choice, large users)

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

May 3, 2023 energynetworks.org 8

Methodology work streams

EHV Load Flow and LRIC Work-stream• Definitions and clarifications (power flow modelling itself not part of common approach)• Feed into CMIWG and into consultants’ development of the template• Engineering and commercial representatives from DNOs, with stakeholder engagement as

needed

DRM Yardstick Model Work-stream• Definitions and clarifications and best practice• Feed into CMIWG and into consultants’ development of the template• Commercial representatives from DNOs, with stakeholder engagement as needed

Tariff structures and application• Seek commonality where feasible• Feed into the CMIWG and into LRIC and DRM work streams• Commercial representatives from DNOs, with stakeholder engagement as needed

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

ENA Regulation Group

Governance Working Group

(GWG)

Ofgem

DCMF andStakeholder Consultation

Outline project structure – governance

May 3, 2023 energynetworks.org 10

GWG structure

• Chair (DNO appointment)• DNOs• Ofgem• Stakeholder representatives (one

representative each for: generators, suppliers, IDNOs, Consumer Choice, large users)

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

May 3, 2023 energynetworks.org 11

Next steps

• DNOs meeting with Ofgem to discuss implementation later today • DNOs identifying CMIWG Chair and

Project Manager• DNOs firming up work-stream structures

and personnel• Ofgem appointing consultant

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORK ASSOCIATION

May 3, 2023 energynetworks.org •12

The SoC Project

A PRESENTATION BY THE REGULATION GROUP OF THE ENERGY NETWORKS ASSOCIATION

PRESENTED BY ANDREW NEVES – DCMFCHAIR

Implementing a common methodology