Competition in Connections Review Presentation to the ECSG Roger - - PowerPoint PPT Presentation

5 July 2006

Competition in Connections Review

Presentation to the ECSG – Roger Morgan, Senior Manager Connections Policy

5 July 2006

Overview of slides

summary of responses to May 06 consultation letter - voluntary standards, overhead line works, IDNOs, DNO affiliates, unmetered SLA potential scope of August consultation document – formal

• bligations / increased regulation, regulation of affiliates,

connections application process next steps

5 July 2006

Summary of responses - voluntary standards

• f service

13 respondents (including one DNO) support formalising standards – voluntary approach is not delivering required level of performance little science behind the formulation of the standards – review can address this standards are effective if adhered to – introduce RIGS to ensure a consistent approach

5 July 2006

Contestable overhead line works

• four DNOs support the grouping of some overhead line works
• ne DNO suggests that the contestable/non-contestable split should

not be altered – already contestable at LV and HV

• ne ICP / DNO suggests that this is a minor issue that may detract from

the more fundamental concerns that need addressing through the Review

5 July 2006

IDNOs (1)

majority of DNOs suggest that a number of DNO/IDNO interface issues need resolving:

• need for a forum to debate interface issues
• effects of networks on resilience of upstream networks
• increased volumes of connections applications for DNOs

since the introduction of IDNOs

5 July 2006

IDNOs (2)

• premature to review IDNO framework - let arrangements bed in
• IDNOs suggest that the following DNO/IDNO interface issues need to

be resolved:

• exit point capacity charges
• boundary metering and boundary metering charges
• managing system security and multiple points of connections
• dual access to isolation equipment
• voltage drop issues

5 July 2006

DNO affiliates

• mixed views from DNOs - some support inclusion within the Review, some
• ppose on the basis that adequate measures are in place - (SLC 4C)
• some DNOs and ICPs suggest that the SP Manweb commitments should apply

to all DNOs with affiliates

• IDNO concerns: affiliates benefit in terms of access to info and sharing of

resources, affiliates distort true competition

• Ofgem should focus on compliance with existing legislation to address

behavioural concerns

• energywatch: supports affiliates as long as they do not create barriers to entry /

formal obligations should be put in place

5 July 2006

Unmetered service level agreement (1)

DNO views:

• support concurrent obligations on both parties to make the

SLA work

• explore whether a voluntary or statutory scheme is

required

• definitional issues surrounding the SLA need to be resolved

and robust reporting arrangements are required

5 July 2006

Unmetered service level agreement (2)

Local Authority views:

• the SLA trial has encouraged DNOs to take street lighting

more seriously

• two options (a) a national SLA with GSOPs or (b) a national

SLA with locally agreed standards of service

5 July 2006

Potential scope of August consultation document (1)

• Introduce formal obligations / increased regulation?
• voluntary or formal standards
• closer regulation of non-contestable activities – POC
• introduce an improved and more effective dispute resolution process
• Connections application process:
• amend timescales for the provision of formal offers
• extent of changes required to streamline the connections application

process

5 July 2006

Potential scope of August document (2)

Affiliates:

• establish procedures and reporting requirements governing

the service an affiliate and non affiliate receive – SP Manweb commitments?

• structural changes to separate monopoly from contestable

activities?

5 July 2006

Potential scope of August document (3)

• IDNOs
• should we review the IDNO regulatory framework?
• Unmetered connections services
• continue with voluntary approach with performance targets –

formalise licence conditions/GSOPs?

• consider extent of further measures and policies to increase

competition – is more work required in this respect?

5 July 2006

Next Steps

publish detailed consultation in August 06 further workshops – focus on specific areas likely to include:

• reviewing and setting new standards: industry input and

guidance required

• formal obligations: what is the most appropriate route

5 July 2006

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