Utility Week

The Month in Review Brearley Pinchbeck 6 | MAY 2023 | UTILITY WEEK "We've been waiting 10 years for the retail sector to try and get itself sorted out. It's a basket case and I have no faith it's going to get sorted out in the next five or 10 years." Tom Glover, UK chair of RWE The Month in Review D istribution network operators (DNOs) are unable to deal with an increas- ing volume of electric vehicle (EV) chargepoint and heat pump connection requests, according to Centrica. In spite of improvements seen in the past year, the DNOs' connection services still present challenges for the rollout of low- carbon technologies (LCTs), Centrica said in response to an Ofgem consultation relat- ing to RIIO-ED1 Incentive on Connections Engagement (ICE). In particular, Centrica has raised concerns around "chronic capacity short- ages", lengthy response times to connection requests and charging inconsistencies. Centrica also claims that some DNOs don't have accurate information relating to their low-voltage networks and fuse sizes, which the British Gas-owner claimed creates delays to connections. Centrica's consultation response said: "There needs to be a concerted effort by DNOs (working with Ofgem as needed) to address chronic capacity shortages on dis- tribution networks; improve customer com- munications, overall transparency and pro- cesses … address inconsistencies between DNOs not being resolved eg. A&D fees and charges for minor works for residential LCT (EV/HP) installations." It added that the company "remains frustrated at the inconsistencies in the way DNOs 'holding up EVs and heat pumps' REGOs have 'outlived original purpose' Ovo Energy's chief execu- tive has slammed the use of Renewable Energy Guaran- tees of Origin (REGO) cer- tificates and has insisted the "system has outlived its origi- nal purpose". Raman Bhatia was speak- ing at the unveiling of Ovo's plan to become the first large supplier to scrap the use of REGOs from the middle of next month. The move forms part of the company's Path to Zero initia- tive, a series of measures that Ovo believes the UK needs in order to hit its net zero ambitions. It is not the first time the use of REGOs has caused debate among suppliers. The subject has been a source of contention in the sector, with some arguing the certificates do not create a demand for renewables. Bhatia said: "REGOs, in their current guise, do not provide any incentive to bring on additional renewable capacity. They simply don't … it's time for change. "So from mid-May we will stop offering 100% renewable tariffs backed by certificates, we don't think that makes any difference. "Instead we will be rein- vesting in an alternative offer, an offer that will help the British public reduce energy consumption as well as, over time, reduce their carbon footprint and we are calling this Path to Zero." DNOs charge or don't charge residential customers for works needed to enable their installation", adding that "there can even be inconsistencies within DNO regions". Despite Centrica's concerns, Ofgem has ruled that the DNOs have met the minimum criteria under the ICE for this year and there- fore won't consult on potential penalties. The regulator has, however, said it expects DNOs to continue making improvements to the provision of their connection services. In response to the criticism, a spokes- person from Energy Networks Association, which represents the UK's energy network operators, said: "There is a real sense of urgency to this. The industry has received 69GW of new connection requests in the year to October 2022 alone. That's an entire grid's worth of capacity in just one year. "The electricity networks are taking immediate steps to speed up the connections process. We are moving from the old 'First Come, First Served' model to a 'First Ready, First Connect' plan, which will unlock green capacity at pace. "We're innovating and investing billions of pounds to ready the grid for decarbonisa- tion by 2035 and we'll continue to work with the regulator and government to connect an unprecedented number of projects faster." Centrica did compliment UK Power Networks for its support for EV chargepoint and heat pump installations, saying that the DNO's "online portal was great and designed to make the service more efficient". Northern Powergrid also came in for praise from Centrica for establishing its LCT Connections Working Group, which Centrica said "created a useful dialogue between stakeholders connecting EV charge points and heat pumps". SPEN was also praised for "a good all round service" and for setting up its iDentify project which is forming the basis for the ENA's future standardised AI solution. Rob Horgan, news editor

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