Utility Week

UTILITY WEEK | MAY 2023 | 33 Electricity "And so the question is whether there's a framework for them. Can everything wait until RIIO3 or do we need to do something sooner?" Another reason to avoid delay is the pressing need to build capacity in the supply chain. Trowell says this is a "tremendous opportunity for UK plc" but warns "if we don't start working on it and planning it in a systemised way now, we will face real challenges in five, six years time". He adds: "We have a window of opportunity to do it and if we get it right it's a tremendous opportunity for employment and investment in the very areas govern- ment is keen to level up." No fear of competition While National Grid has been vocal in calling for faster progress on the energy transition, it has also been subject to accusations itself of being a blocker. In March, Octopus Energy chief executive Greg Jackson expressed his frustration at the monopolistic nature of the transmission system, saying: "The thing that we would most love would be some form of contestability." Trowell says the organisation would "not stand in the way" of competition. However, he cautions: "You have to take into consideration that it is an integrated system. If someone built a competitive element on the onshore grid, it has to then network with the rest of the grid, so you have to have some coordinating role." He adds: "Just allowing free market competition to decide how and when it plugs into the network is going to cause very serious issues. "Our view is that is there is a drive to try and see where competition is possible. It may actually be a good way to help deliver some of the programme. We're not against it. But we do think it has to be done carefully because of that integrated grid and there are areas that lend themselves better than others." The creation of the new department comes alongside a public engagement campaign linking these huge infrastructure projects to the more mundane but relatable uses of electricity around the home. Trowell says: "Awareness of renewables has grown a lot but understanding how you connect from an offshore wind farm down to someone's home and what that means for them in terms of their lifestyle is something we felt was missing." He sees this as the opening chapter in a wider story about the direct impacts of net zero but stresses "we have to be careful not to overcomplicate things and assume that just because we're interested in the finer details that everyone else will be". While consumers across the country will be impacted by the energy transition, there will be areas were it is particularly visible. Trowell stresses that these communities hosting the infrastructure must be properly consulted and be able to see the benefit. He added: "These communities should have a say about what is a meaningful benefit to them, rather than someone sitting in an office somewhere deciding for them." James Wallin, editor cess, how allowances work." Trowell welcomes Ofgem's introduction of ASTI and the debate about whether this framework could provide a model for the next price control. However, he warns against seeing RIIO3 as the earliest opportunity for change. "We all have to recognise that there are projects ongoing now, or will need to start, before we get to what- ever RIIO3 looks like. So the idea that everything can be held out till that is done is maybe something we need to discuss. "What ASTI does is provide us with the broad frame- work to be able to be to start making the full commit- ment to deliver. What we will now need to do is come up with some refinement of that model that matches the needs of what we actually have to do. It's very possible that other projects will come before we get to RIIO3 that might need to be added, whether we do them or some- one else does that.

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