As the principles underpinning energy networks regulation evolve, so too do the incentives, risks and trade-offs for network and system operators. With new forms of regulation, such as GB’s RIIO approach, the industry is moving towards outputs and innovation-based regulation, with an increased drive for customer and stakeholder engagement, and focus on price regulation based on totex rather than separate controls on capex and opex.
Baringa has worked alongside a number of organisations helping them to understand the implications of new regulatory models for their businesses, and to support their regulatory submissions. We have undertaken benchmarking exercises, analysed options surrounded integrated transmission planning, forecast system operation costs to support the development of an incentive scheme and programme managed a price control process. For non-regulated parts of network businesses we have advised on new investments in interconnection, and the supporting regulatory and commercial arrangements.
The foundation of our work is a deep knowledge of evolving regulatory models, a thorough understanding of the operations of network businesses, our abilities to develop credible future scenarios and undertake sophisticated analysis, and our capabilities to manage large regulatory programmes within our clients.
Viewpoint: The future role of network operators: The emerging active DSO model
To view or download our Viewpoint, please click here or on the image below: