Utility Week

UTILITY WEEK | 15TH - 21ST MARCH 2019 | 21 Policy & Regulation CODE SECTOR REMIT ADMINISTRATOR SIGNATORIES Balancing and Electricity Settlement arrangements for electricity traded Elexon Suppliers and generators Settlement Code (BSC) in wholesale and balancing markets Connection and Use of Electricity Contractual arrangements for connection National Grid Electricity Suppliers, generators and System Code (CUSC) to and use of transmission networks System Operator distribution networks Distribution Connection Electricity Contractual arrangements for connection to Electralink Suppliers, generators and and Use of System and use of distribution networks distribution networks Agreement (DCUSA) Grid Code Electricity Technical requirements for connection to National Grid Electricity Generators and and use of transmission networks System Operator distribution networks Distribution Code Electricity Technical requirements for connection to and Energy Networks Suppliers, generators and (DCODE) use of distribution networks Association distribution networks System Operator Electricity Relationship between transmission networks National Grid Electricity Transmission networks Transmission Owner and National Grid Electricity System Operator System Operator Code (STC) Uniform Network Code Gas Arrangements for transportation and supply Joint Office of Gas Suppliers, shippers and networks (UNC) of gas Transporters Independent Gas Gas Arrangements for transportation and supply Gemserv Independent networks Transporters' Uniform of gas on independent networks Network Code (IGT UNC) Master Registration Electricity Arrangements for registration of electricity Gemserv Suppliers and distribution Agreement (MRA) meters and switching between suppliers networks Supply Point Gas Arrangements for registration of gas meters Electralink Suppliers and networks Administration and switching between suppliers Agreement (SPAA) Smart Energy Code Electricity Smart metering arrangements Gemserv Suppliers, networks and (SEC) and gas Data Communications Company Mitchell has long called for the creation of a system operator that is publicly owned and fully integrated across gas and electric- ity. If this happened and all the codes were combined into one, she says it would "make sense" for this entity to become the sole code manager. National Grid's Twomey worries that abolishing the code panels would also mean losing the valuable "expertise and experi- ence" of its members. He says the panels can work well if they have "the right people, with the right make-up and the right structure". But Energy UK's Martin says it is a pos- sibility that is definitely worth exploring. All options should be "on the table", he remarks, adding that the model proposed by Mitchell could allow a better representa- tion of competing interests, although it could easily create a "long-winded" and "messy" change process, depending on how it is implemented. And despite his concerns, Twomey certainly sees the value of ending "open governance" – whereby modifications are proposed by code signatories – for issues such as network charging that are so com- mercially important they can make or break business models. Frustrating progress Citizens Advice's Horne says the battle over the removal of triad avoidance payments several years ago exemplifies the problems this creates. He says codes signatories sub- mitted more than 40 alternatives to the main modification, forcing the CUSC panel to pro- duce roughly 1,000 pages of reports, "which was just unbelievable". He suspects many were submitted with this purpose in mind, to gum up proceed- ings and prevent changes from being imple- mented. He says the saga "really reveals the ability for industry to frustrate progress and use the process to hold back reforms that save consumers money. There were millions of pounds on the table for that one." Ultimately, Horne is "agnostic" about what the arrangements should be, saying it's the outcomes that really matter. This is a view shared by Tim Rotheray, director of the Association for Decentralised Energy: "We're trying to achieve the most cost-effective way of decarbonising our energy economy and we know that the digital revolution and the decentralisation of equipment will be part of that. They're not the whole answer but they are going to have a key role to play. "What that means is that energy users and customers have the potential to play a very significant role in the future system. The codes were designed for energy experts, for central plants, the grid and Ofgem. They were not designed for hundreds of thousands of participants, but tens of participants." He says the real test of success will be whether energy customers can participate in "shaping and influencing" the codes and navigate through them in a "reasonable, cost-effective and not burdensome way". If not, then an important opportunity will have been wasted.

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