Network Flexibility

1
Network Flexibility

• Mike Wassell
• Transmission workstream, January 2012

2
Background

• Network Flexibility has been discussed throughout
  the Talking Networks process
• Network flexibility does not relate to the
  Flexibility products available under the exit
  regime
• it is about system integrity / resilience
• and the way the network will be used
• The investments included in our July business
  plan under the network flexibility banner
  represent a small proportion of our overall plan
  (4)
• These investments, or alternative solutions, will
  be vital in allowing the network to operate more
  dynamically

3
Current position

• Following stakeholder feedback, we have removed
  the majority of the funding from our ex ante plan
• We propose that flexibility-related funding is
  triggered by our uncertainty mechanism
• Following stakeholder engagement and
• Full exploration of commercial, operational and
  physical investment solutions
• Following feedback received through our Talking
  Networks engagement, we wrote out to stakeholders
  on the 22nd of December 2011
• We asked for opinions on whether current
  processes meet everyones needs and whether new
  products are required

4
Progressing things forward

• There are a number of elements of this debate to
  be taken forward
• Requirement for new products or services
• We propose this is taken forward and developed
  via the transmission workgroup
• How the uncertainty mechanism will work,
  including the process for liaising with
  stakeholders and what the trigger will be for
  funding
• We propose that this is presented to transmission
  workgroup before our final RIIO submission (2nd
  March)
• How the 1 in 20 planning obligation should be
  developed to take account of future requirements
  of the network
• We are currently assessing internally how best to
  take this forward in order to ensure the
  interactions with other obligations are
  appropriately considered

5
Proposal summary

• We propose a new review group is set up and the
  first meeting is held on the afternoon of 23rd
  January
• This forum will develop any requirements for new
  products or services
• We will present our uncertainty mechanism process
  to this forum
• We will update the transmission workgroup on the
  work associated with the 1 in 20 planning
  obligation development at a future meeting
• We are asking for the transmission workgroups
  approval for this approach