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NETWORK / 28 / MAY 2018 FUTURE NET WORKS I nnovation was a key word at this year's Future Networks Conference and is something that both the gas and electric- ity networks are making business as usual. This message was clear from the start of this year's event, which took place at the Bir- mingham Conference & Events Centre, last month. Ben Eyre-White, head of electricity networks and sys- tems, Department for Business, Energy and Industrial Strategy (BEIS), kicked off proceedings with a presentation entitled 'Up- grading our energy system'. Eyre-White said: "If we get this right we have the oppor- tunity to create new jobs and businesses and to save people up to £40 billion over the com- ing decades." He described two specific challenges set out in the Gov- ernment's smart systems and flexibility plan. "Firstly, to open up network reinforcement to competition. Competition that would enable smart technologies to compete with traditional network solu - tions so that the lowest cost op- tion could be found by consum- ers. Secondly, we challenged network companies to find a better way of coordinating our transmission and distribution. So that a truly whole system ap- proach could be taken to plan- ning and operating the system. The industry has responded to these challenges. "In January last year, Govern- ment, National Grid and Ofgem Innovation as usual The 2018 Future Networks Conference helped set out the path towards the UK's future energy system. With leading speakers from the regulated networks industry, independent networks, Ofgem and government, the event provided a forum for insight, ideas sharing and debate. Alec Peachey reports. announced the creation of the new system operator within Na- tional Grid. The licence changes needed to bring this into effect are ongoing and are due to be completed at this time next year. But the system operator hasn't waited until then to act. It's sim- plifying the number of ancillary services, it's finding new ways of procuring those ancillary services and making contracts work as well for the demand side, as they have historically for the supply side. Eyre-White highlighted innovation as key to driving the sector forward, but told delegates that he wants to see the sector put more of a focus on consumers. "People see energy as some - thing that's done to them," he said. "The energy system isn't designed with consumers at its heart. We want to change that. We want to build a consensus around a longer-term vision for energy. One that puts consum - ers, not producers at its heart." framework from 2021 and says these plans will deliver over £5 billion worth of savings for consumers over five years. As part of its plans Ofgem has also proposed cutting the regulatory period to five years from eight years. "We must ensure that consumers are given a much stronger voice," Brearley told delegates. "Equally, we're mak - ing sure that we understand and respond to the way networks are used. That means moving away from the long term eight-year price controls and back to a default five-year price control." Highlighting the impor - tance of innovation, Brearley remarked: "We think RIIO2 should deliver significant levels of investment, reliability and innovation at lowest cost. We think that companies have made good progress with innova - tion, but we do think there's an opportunity to go further. They will need to stay ahead of the curve, but ultimately the use of innovation and technology needs to become second nature. Our ambition for RIIO2 is as high as it was in RIIO1. Overall, RIIO2 is designed to be adapt - able. Innovation funding will play a key part and does need to become more focused on the areas where we can get the best value." An independent view Stewart Dawson, managing director of Vattenfall Networks, offered an IDNO point of view. Last year, Vattenfall formed a new unit to own and operate The regulation side Jonathan Brearley, executive di- rector for systems and networks at Ofgem, delivered a presen- tation entitled 'Encouraging innovation via regulation'. He talked about RIIO2 and outlined the importance of consumers. Ofgem recently set out proposals for a new regulatory Other key topics discussed: l DNO to DSO transition. l Planning for the demands of the EV supercharging network. l Delivering a multi-vector service. l Developing a hydrogren- based system. l Building in resilience to cope with future challenges. l How digital transformation can aid DSOs' management of a smart network. l Evolution of the supply chain to meet changing consumer habits. l EV charging behaviours. Co-sponsors: