Xose r ve F GO Ope n me e tings 2 F e b Bir mingham 3 F e b - - PowerPoint PPT Presentation

Xose r ve F GO

Ope n me e tings 2 F e b Bir mingham 3 F e b L

• ndon

1

T he purpose of this me e ting

We pre se nte d o ur initia l tho ug hts a t the Pro je c t Ove rvie w b o a rd (POB) me e ting o n F rida y 16 Ja n this inc lude d a first dra ft o f the Pro je c t I nitia tio n Do c ume nt (PI D) At the POB it wa s a g re e d two o pe n me e ting s to g ive a ll sta ke ho lde rs a c ha nc e to :

• Me e t the pro g ra mme ma na g e me nt te a m a nd e xplo re a ny furthe r issue s no t

disc usse d a t the POB.

• Co mme nt a nd disc uss o ur pro po se d time ta b le a nd pla n
• F

e e db a c k o n o ur initia l de live ra b le s

• I

nfo rm o ur vie w o f the de sig n o f the ta rg e t o pe ra ting mo de l

1. We ha ve a c ha lle ng ing prog ra mme time sc a le . E a rly (a nd e ffe c tive ) mobilisa tion is ke y 2. Ke y to a suc c e ssful prog ra mme is to ha ve a c le a r vision of wha t we wa nt to a c hie ve 3. Appropria te g ove rna nc e re quire s those who a re duly a uthorise d to ma ke time a va ila ble a nd be ‘in the room’ for the rig ht me e ting s

2

Ag e nda

1. Sc ope a nd obje c tive s - 10mins 2. De live ra ble s - 40mins

• Are the se the rig ht de live ra b le s?
• Ho w sho uld we o rg a nise o urse lve s?

3. Pla nning - 25min

• F

e e db a c k o n time ta b le

4. Blue print of the ta rg e t ope ra ting mode l - 40mins

• Disc ussio n o n the de c isio ns to b e ma de

5. Ne xt Ste ps - 5mins

Sc ope and

• bje c tive s

4

Obje c tive a nd sc ope – Ofg e m Re quire me nts

F unding

■

De ve lo p c o lle c tive & c o st re fle c tive fund ing me tho d o lo g y

■

E sta b lish T ra nspa re nt a nd inc lusive a nnua l b ud g e t se tting pro c e ss

■

E sta b lish tra nspa re nt invo ic ing me tho d o lo g y

Gove r na nc e

■

E sta b lish Re q uire me nts to run the CSP e c o no mic a lly a nd e ffic ie ntly a nd in line with b e st pra c tic e und e r the Co mpa nie s Ac t 2006.

■

E sta b lish b o a rd tha t is a c c o unta b le to a ll use rs a nd a s a minimum to inc lud e : a n ind e pe nd e nt Cha ir, no n-e xe c utive me mb e rs a nd a Chie f E xe c utive

■

Intro d uc e a ro b ust a nd tra nspa re nt e le c tio n pro c e ss a nd a pro c e ss to d ismiss b o a rd me mb e rs

■

Cre a te pe rfo rma nc e e va lua tio n fra me wo rk to mo nito r the e ffe c tive ne ss o f the Bo a rd

Owne r ship

■

GT s to re ma in o wne rs b ut with limite d rig hts a nd lia b ilitie s with a ll use rs ta king a sha re in the c o ntro l a nd pe rfo rma nc e risk o f the CSP

■

Cha ng e to Artic le s o f Asso c ia tio n a nd Me mo ra nd ums to fa c ilita te the re q uire d c ha ng e s

5

F GO Gove rna nc e Role s a nd re sponsibilitie s

Name Role Re sponsibilitie s

F GO POB Ove rsig ht a nd Go ve rna nc e Ove ra ll d e c isio n ma king De c isio n ma ke rs to d rive the pro g ra mme fo rwa rd , a nd a ppro ve fina l d e live ra ble s fo r sub missio n to Ofg e m, to wid e r ind ustry (via re le va nt c o d e s) o r thro ug h imple me nting o pe ra tio na l c ha ng e s to Xo se rve Pro g ra mme ma na g e rs Pro g ra mme ma na g e me nt PMO a c tivitie s F a c ilita te POB me e ting s Run wo rking g ro up me e ting s Pro d uc ing d isc ussio n pa pe rs a nd re c o rd ing d e c isio ns to e nsure pro g re ss is c a pture d F GO wo rkg ro ups Pro g re ss spe c ific d e live ra ble s within e a c h wo rkg ro ups De ve lo p d e live ra b le s fo r c o nsulta tio n with wid e r ind ustry Ma ke info rme d re c o mme nd a tio ns to the POB fo r fina l d e c isio n. Ofg e m Re g ula to ry o ve rsig ht Ultima te d e c isio n ma ke r Appro ve ke y d e live ra ble s whe re a ppro pria te Ma ke ke y d e c isio ns suc h a s UNC c o d e c ha ng e s GT s Pa rtic ipa tio n in POB Pro vid e ro b ust c ha lle ng e E nsure POB a nd wo rk g ro up re pre se nta tive s ha ve a ppro pria te e xpe rie nc e a nd d e c isio n ma king a utho rity. Appro ve ke y d e live ra ble s a nd c a rry o ut d e live ra ble s. Ie UNC Mo d s IGT s Shippe rs Xo se rve

De live r able s

7

De live ra ble s

1. Ne w c o st a llo c a tio n me tho do lo g y 4. Ne w sta te me nt o f c ha rg e s

• 3. Cre dit risk ma na g e me nt

a rra ng e me nts 5. I nc lusive b udg e t se tting pro c e ss 9. I nvo ic ing fra me wo rk

• 11. T

ra nspa re nt invo ic ing a ppro a c h

• 10. Pro c e ss fo r de ve lo ping the

Busine ss Pla n 2. F ina nc ia l mo de l 7. Annua l b udg e t fo r 2016/ 17 a nd sub se q ue nt ye a rs 6. Pro c e ss fo r no tifying Ofg e m

• f b udg e t c ha ng e s

8. E sc a la tio n pro c e ss to Ofg e m fo r a ny issue s

• 12. Mo re inc lusive b o a rd

a rra ng e me nts

• 13. Bo a rd c o mpo sitio n a nd

c o nstitutio n

• 14. Ro le spe c ific a tio ns fo r

Bo a rd me mb e rs

• 15. Ro b ust a nd tra nspa re nt

e le c tio n pro c e ss

• 17. Pro c e ss fo r dismissa l o f

Bo a rd me mb e rs

• 18. Cha ng e s to Artic le s o f

Asso c ia tio n

• 16. Pe rfo rma nc e e va lua tio n

fra me wo rk

• 21. Co ntra c t b e twe e n Xo se rve

a nd e a c h use r

• 19. Cha ng e s to me mo ra ndums
• r sta ke ho lde r a g re e me nts
• 21. Custo me r Co ntra c t

fra me wo rk

8

Likely disagreement and changes not complex Likely disagreement and complex changes Wide agreement and changes not complex Wide agreement, complex changes

Complexity Agreement

De live ra ble s ma trix

9

Wha t c ha ng e s will be re quire d?

UNC Code c hange s? Change s to/ ne w Se r vic e agr e e me nts? Ar tic le s of assoc iation? Othe r c hange s?

Planning

11

F ive pha se de live ry a pproa c h

Phase Pr

• gr

amme manage r r

• le

POB/ wide r industr y/ Ofge m 0: Initiation

De ve lo p a pro g ra mme initia tio n d o c ume nt (PID) Re vie w a nd a ppro ve PID E sta b lish Go ve rna nc e a nd d e c isio n ma king struc ture s Re vie w a nd a ppro ve g o ve rna nc e struc ture s Cre a te pro g ra mme ma na g e me nt o ffic e

1: De sign Agr e e and doc ume nt r e sponsibilitie s and the alloc ation of the se be twe e n par tie s

Put in pla c e suita b le re po rting struc ture s a nd re le va nt pro c e sse s Ag re e a nd a ppro ve struc ture a nd pro c e sse s E sta b lish a hig h le ve l pro g ra mme pla n with mile sto ne s a nd wo rkg ro up d e live ra ble s Ag re e a nd c o nfirm inte rna l re so urc e s fo r the pro g ra mme pla n Pro d uc e a c o mmunic a tio ns pla n a nd struc ture Ag re e pla n a nd struc ture De ve lo p a se t o f b lue prints fo r the ta rg e t o pe ra ting mo d e l Re vie w a nd a g re e the fina l b lue print to b e a d o pte d

2: De ve lopme nt Ma na g e the wo rk g ro ups a nd pro vid e suppo rt a nd

c ha lle ng e thro ug ho ut pro c e ss Id e ntify a re a s fo r a d d itio na l re se a rc h / e xplo ra tio n Co ntrib ute to wo rkg ro ups a nd POB, e nsure rig ht le ve l o f re so urc e pa rtic ula rly time fo r ke y d e c isio n ma ke rs Wo rk up pra c tic a l so lutio ns b a se d o n id e ntifie d d e sig n fro m pha se 1

3: De live r y

Ma na g e d e ve lo pme nt o f F GOs so lutio ns whilst pro vid ing suppo rt a nd g uid a nc e in re la tio n to the pro po sa ls pre se nte d in the d e ve lo pme nt pha se Imple me nt d e c isio n's ma d e in pha se 2. Ofg e m to ma ke d e c isio ns (c o d e mo d e tc )

4: Closur e

E nsure tha t a ll o ur c ritic a l suc c e ss c rite ria ha ve b e e n suc c e ssfully a c hie ve d

12

Imme dia te ne xt ste ps

T

• day to be ginning of Apr

il Januar y F e br uar y Mar c h Apr il POB Me e tings Wor kgr

• ups

Pr

• gr

amme Manage me nt POB 16 Jan

Ag re e PID Re vie w initia l pla n E sta b lish ro le s a nd re spo nsib ilitie s

POB 13 F e b

Appro ve PID Re vie w d e ta ile d pla n Re vie w stra w ma n d e sig ns

E ar ly Mar c h POB

Ag re e fina l wo rking g ro up T OR

L ate Mar c h POB

Re vie w initia l b lue prints

Apr il POB

De c isio n o n d e sig n Dra ft Stra w ma n d e sig n L ist o f c o nsulte e s fo r the d e sig n Vie w o n wo rkg ro up d e sig n Me e ting s a nd d isc ussio n F irst wo rkg ro up me e ting s Dra ft initia l pla n Re vie w a nd re fine pla n De ve lo p a nd c o nsult o n d e sig n b lue prints F ina lise d e sig n b lue prints Wo rking g ro ups T OR d ra fting Go ve rna nc e a nd PM d e sig n Ca sc a d e te rms to wid e r g ro up

13

Hig h le ve l pla n

Jan 15 F e b 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Se p 15 Oc t 15 Nov 15 De c 15 Jan 16 F e b 16 Mar 16 Apr 16

A: F

• rma lise PID

B: Co nside r to pic pa pe rs C: E sta b lish PMO to o ls D: E sta b lish risk / issue tra c king a ppro a c h E : E sta b lish hig h le ve l g o ve rna nc e pro c e ss F : E sta b lish sta ke ho lde r e ng a g e me nt pro to c o ls F : E sta b lish hig h le ve l pro g ra mme pla n

Pha se 0: Initia tion

A: E sta b lish Pro g ra mme b lue print B: E sta b lish b lue print de live ry mo de l C: Re c o nside r F GO g o ve rna nc e D: E sta b lish a pro g ra mme sc he dule

Pha se 1: De sig n

A: Co nve ne POB Me e ting s B: Co nve ne wo rkg ro ups C: Co nside r imple me nta tio n ro ute s D: Co nside r imple me nta tio n time sc a le s E : Imple me nta tio n pre pa ra tio n

Pha se 2: De ve lopme nt

POB Me e ting s Pro g ra mme wo rkg ro ups

14 Jan 15 F e b 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Se p 15 Oc t 15 Nov 15 De c 15 Jan 16 F e b 16 Mar 16 Apr 16 Existing Industry Change / Governance Mechanisms

Hig h le ve l pla n

Pha se 3: De live r y

A: Clo sure individua l wo rkg ro ups B: Ma na g e a nd re info rc e e nduring o pe ra tio ns C: Issue pro g ra mme c lo sure c o mmunic a tio ns D: F ina lise pro g ra mme o utputs E : Clo se pro g ra mme

Pha se 4: Closur e

UNC Mo dific a tio n Pro c e ss L ic e nc e Mo dific a tio n Pro c e ss PCF M pro c e ss Xo se rve inte rna l c ha ng e pro c e ss A: Imple me nta tio n via the UNC Mo dific a tio n Pro c e ss B: Imple me nta tio n via Ofg e m's lic e nc e a me ndme nt pro c e ss C: Imple me nta tio n via Ofg e m's pric e c o ntro l funding me tho do lo g y D: Imple me nta tio n via c ha ng e s to Xo se rve 's a rtic le s o f a sso c ia tio n, me mo ra ndum o r sha re ho lde r a g re e me nt

Blue pr int for T ar ge t Ope r ating mode l

16

F

• rming a Blue print

Gove r nanc e

F unda me nta l c ha ng e s to the UNC

F unding

F ully Co st re fle c tive Cha rg ing me tho do lo g y

• r

Simple Cha rg ing me tho do lo g y Dire c t invo ic ing

• r

I ndire c t invo ic ing (thro ug h GT pa ss tho ug h)

Obligations

Re fo rm o f the Xo se rve b o a rd - c o mpo sitio n, sc o pe , virie s

• r

Cha ng e s to / ne w se rvic e a g re e me nts

17

Ne xt Ste ps

Industry

■ E

nsure a ppro pria te re so urc e s in e a c h

• f yo ur o rg a nisa tio ns

■ E

nsure POB a tte nde e s a re e mpo we re d to ma ke de c isio ns

■ Pro vide ke y po int o f c o nta c t to

pro g ra mme ma na g e rs – re se rve time in dia ry fo r b i-la te ra ls

Prog ra mme ma na g e me nt te a m

■ Pro duc e sta ke ho lde r c o mmunic a tio n

pla n

■ E

sta b lish the pro g ra mme ma na g e me nt

• ffic e a nd pro g ra mme func tio ns

inc luding :

– wo rk g ro up – risk lo g – sta ke ho lde r ma p e tc ■ De sig n first dra ft o f ta rg e t o pe ra ting

mo de l b lue print

E sta blish da te s in the dia ry for bi- la te ra l/ multi- la te ra l me e ting s

T hank you