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34 | NOVEMBER 2020 | UTILITY WEEK Operational Excellence Analysis need this capability, claiming retailers like Octopus have already shown how smart sys- tems can be used to shi demand away from peak times if consumers are presented with the right incentives: "This is a clockwork solution in a digital world. It's not appropri- ate and it's not necessary." She continues: "It violates really impor- tant principles of how the energy system is supposed to work. DNOs are not supposed to be able to reach into customers' homes and switch off their energy supply. The burden of justification for that needs to be incredibly high and we are nowhere near that." Describing it as a "clunky, blundering intervention", Cowton says the proposed powers could further tarnish the public rep- utation of smart meters, which are far from being universally accepted: "Customers like smart meters if they can see a benefit from them; if they reward them in some way or get them a cheaper tariff; if they improve their lives. "If customers start to perceive smart meters as a kind of backdoor into control- ling their homes and their lives, then it makes our job really hard to get customers to embrace the smart meter switch, which they absolutely need to do." Citing UK Power Networks (UKPN) as an example, Cowton says some DNOs are embracing a more "customer-centric" vision of the future. But, she adds: "There are other DNOs, I think, who still see themselves in a Soviet-style command and control system and don't believe that it's their duty to design the energy system around customers." When asked why flexibility markets have not developed faster, Cowton says part of the problem lies with the failure of network charges to create the right price signals to drive changes in behaviour. However, she also blames a "dinosaur culture" at some of the network companies, "where they view technology with suspicion". "Networks have pushed back hard on having to do so because they say their IT infrastructure isn't up to scratch," she adds. "What we need to recognise is that's not a good enough excuse. "Just because something is not currently possible under their existing IT systems, does not mean they should not have to do it. And if they need to update their IT infra- structure, then so be it." Catherine Mitchell, professor of energy policy at the University of Exeter, describes SSEN's proposals as a "step back to passive management". She says they would under- mine the development of the smart time-of- use tariffs that can manage demand on the continued from previous page power grid while still leaving customers in control. "Networks have had a lot of time to become active and yet there have been mini- mal moves. Ofgem has done little to provide more incentives to ensure that activity," she tells Utility Week. "Not only does this modi- fication allow networks to continue at their snail's pace of change but it undermines the new entrants trying their best to operate in a sustainable, market-based way for the ben- efit of customers." She says the issue once again highlights the need for reform of the code change pro- cess as well: "Self-regulation of codes by sig- natories has to end." Precautionary powers to protect supply Matthew Roderick, chief executive of con- sultancy N3rgy and former chief technology officer for the Data Communications Com- pany, recognises the inertia described by Cowton and Mitchell, saying digitalisation of networks is proving "extremely challenging". However, he also believes the same "ingrained culture" means networks will want to "keep the lights on" whenever possi- ble. "They're encouraged through the regula- tory framework. They're encouraged through their engineering practices. They're encour- aged through their operational culture," he says. Given the "enormous amount of change" DNOs are undergoing, Roderick believes the powers proposed by SSEN are a "sensible precaution". He notes that retailers can already use the same smart meter functionality to dis- connect customers who are not paying their bills: "If the retailers have this capability for economic measures, why shouldn't the net- works have this capability, with similar pre- cautions and similar limitations, to pave the transition to a greener, more environmental friendly, more renewable energy system." He says the bigger issue is the circum- stances in which these powers could be used: "Smart meters aren't that intelligent. It's the people that have control over them who are the risk factor, and the industry is governed and regulated to quite an extensive level to try and control that." "Because this is a pretty unpalatable measure in political and consumer circles, it will have to have quite stringent controls put around it," he adds. "There's chal- lenges around the vulnerability register in the industry and how accurate that is. Those individuals need to be excluded from this facility." Aer being held up as an example to fol- low, Utility Week spoke to UKPN to seek its views on the matter. Its director of strategy and support services, Suleman Alli, said in a statement that the company seeks to "always promote customer choice, first and foremost. Our job as a network operator is to ensure that the electricity networks are ready to serve customers' changing needs and to not be a blocker to decarbonisation". However, UKPN would not be drawn on whether it supports SSEN's proposals. Although they may be unwilling to say it, Roderick believes all DNOs would really like this emergency backstop in place: "How change typically works within the DNO world is one of them volunteers to lead and they all follow suit. So, in this instance, SSEN has taken the poisoned chalice to lead it, so to speak, and has taken flak as a result." Responding to some of the recent criti- cism, SSEN stressed that under its proposals customers' consent would be "required in all instances, could be revoked at any time, and curtailment would be capped at two hours a day and a maximum of eight hours in a month". It said this "contingency arrange- ment" would be in place for a maximum of 12 months while alternative solutions were investigated and implemented. This does slightly raise the question of why customers would be willing to have their power supplies cut off at all. Would, for instance, their answer determine whether they can get an electric vehicle charger installed? Any suggestion that customers are being pushed to give up control of their homes is unlikely go down well as the recent reaction demonstrates. Tom Grimwood, energy editor Elon Musk, the billionaire founder of Tesla, has promised to halve the per-megawatt cost of batteries within three years