Issue link: https://fhpublishing.uberflip.com/i/1089967
NETWORK / 15 / MARCH 2019 facing SGN. To date it has felt like largely a one-way flow of information – and lots of it – but our December meeting was a full day just for CEG members to reflect on what we have heard so far. We now have the opportunity to scru- tinise individual building blocks of SGN's business plan and then as we go through the year to look at how the whole plan fits together and how SGN respond to feedback from consultation. In fact, that consultation has effectively started already. SGN have been keen to put customer and stakeholder input at the heart of their business plan development so quite a bit of our time has been spent going through the evidence that SGN has already gathered. Already our feedback has helped shape their approach to some of this re - search. For example, we have pressed SGN to do more to understand the needs of their largest business customers. RIIO2 It is already clear that one of the big issues for RIIO2 will be how SGN deal with the challenge of decarbonisation and the cur- rent policy uncertainty in that space. With heat as a devolved matter for Scotland some of the drivers may well be different in the two regions – as indeed they are on fuel poverty. SGN have hosted two workshops specifically on this issue with a wide range of stakeholders and it is already clear that there are different views within the CEG it- self as to how the future might unfold. What we will be looking for from SGN is a clear sense of how that uncertainty is impacting their approach to investment. They need to keep the gas flowing safely for customers but must also avoid investing heavily in as- sets that might ultimately be stranded. The final focus for the CEG has been to build our understanding of Ofgem's likely approach to setting output deliverables and incentives and we will be looking closely at the regulator's sector strategy consultation that they published before Christmas. In particular the CEG have been keen that Of - gem ensures it has direct customer evidence for any outputs or targets that it decides to set centrally, given their stated ambition for there to be a stronger consumer voice in RIIO2. We are also keen to focus on the areas where we can add the most value given our strong consumer expertise. We shouldn't simply become a surrogate for scrutiny of costs by the regulator. We are hopeful that Ofgem has taken these mes- sages on board. We have a huge amount to do in 2019 culminating with the submission of the business plan and our report at the end of the year – with significant engagement with Ofgem's own RIIO Challenge Group on the draŽ plans as we go through the year. I be- lieve the work we've put in so far means we are ready to take on that challenge. It will be tough as all the members of the group are doing this alongside a day job. But we are all strongly committed to the principle that what SGN do (beyond complying with legal obligations) should reflect what consumers want and are willing to pay for. We hope that we can have a real impact. PAYING FOR THE NETWORKS MATT ALLEN THE BATTERY STORAGE VISIONARY Gaining an insight from the people driving change across the energy, water and u li es industries. Read more now at u lityweek.live/changemakers UWL19-gamechanger-Allen-A4ad.indd 1 25/02/2019 11:56 Specifically-developed mobile app technology combined with our expertise delivers a proven and trusted quality-assurance system. Reduce asset failures and costs, whilst improving network quality, visibility and longevity. SAVING £MILLIONS for UTILITIES and CONTRACTORS Improve your asset quality today Visit www.controlpoint.co.uk or Email info@controlpoint.co.uk TOTAL ASSET QUALITY ASSURANCE DATA CAPTURE QUALITY ASSURANCE REMOTE INSPECTION ANALYSIS & REPORTING TRAINING ONSITE SUPPORT TESTING & LAB OPERATIONS O U R S ER V I CE S