Utility Week

Operations &Assets UTILITY WEEK | 1ST - 7TH MARCH 2019 | 19 Views from the table: Akshay Kaul, acting executive director for systems and networks, Ofgem "We have to think about the design of institutions and how decisions get made in this system to recognise the fact there is much more interaction between the diff erent parts of the system than there used to be." Bethan Winter, system operations manager, Wales & West Utilities "Part of the problem is that costs and values aren't currently easy to measure across the whole network. Things are measured in diff erent units, it's not obvious how effi ciencies in one part of the system impact elsewhere and that's before you even start to think about cost impacts." David Richardson, innovation lead, Innovate UK "Generally people can come up with a technological solution when they're looking at things with a whole- system approach. It's a market pull mechanism which is the really diffi cult part. How do you design something which enables these things to be collectively fi nanced and the benefi ts to be spread fairlyover the various users of the system?" Brought to you in association with: Goran Strbac, professor of energy systems, Imperial College London "The market and regulatory framework needs to improve to align the objectives of the industry and businesses with the objectives of society." the future of heat – that we're actually in the space to do that yet? I'm not sure we are." "If one looks at the somewhat cha- otic disorderly approach one might argue we've followed to date, we've actually been remarkably successful in terms of the pro- gress we've made in decarbonising," added another. "One could make the argument that the absence of a whole-system view hasn't necessarily precluded signi• cant progress. If you go to a whole-systems view, you do start getting into a position where you are starting to nail down some of those options." Both emphasised the need to put consum- ers at the centre of decision-making: "Unless we bring consumers with us, we might as well whistle because it's not going to work." There was agreement that pursuing some options for the future of the energy system would rule others out, and that in many cases it is still too early to make big strategic decisions. Heat debate With regards to heat, attendees said there should be large-scale trials and demonstra- tions to provide an evidence base and a proper public debate to deliver a mandate. Some therefore called for more value to be placed on optionality. "If it's not going to cost much more to put in a fat cable com- pared to the cost of digging up the road, put in a fat cable," remarked one. They said the response to uncertainty needed go beyond merely making "no regrets" decisions. The table also agreed on the need for greater engagement with consumers to establish their needs and wants and how they are likely to interact with the energy system when presented with price signals and incentives. Several attendees raised the tricky issue of how to design a framework that rewards certain desirable behaviours without e‚ ec- tively punishing others. They expressed con- cerns that vulnerable customers – those who can least a‚ ord to – might end up paying the most for their energy. On this front and many others, Brit- ain obviously still has a long way to go to achieve a whole-system approach to energy.

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