Date of meeting : 15 April 2013 Venue : Ofgem 9 Millbank London SW1P 3GE
For a list of attendees including apologies please see appendix 1
The minutes of the previous meeting were agreed.
Terms of reference (Ofgem)
The terms of reference were agreed. It was noted that the pre August work was progressed from an ED1 perspective but that many of the next steps identified require a wider approach which considers all roles and relationships in the value chain.
Scoping Paper for SGF (Ofgem)
It was commented that there is a role for the group to collate what comes out of related work undertaken elsewhere and it was proposed to document this in a log. It was requested to have a representative from DECC present and an action was taken by Ben Davison to raise this with colleagues. The Scoping Paper was agreed.
Action - To request participation in the work group from DECC - Ben Davison
Discuss updated matrix (Ofgem)
A query was raised as to whether the right types of customers are being considered, as at a recent Low Carbon London event, it was highlighted that there are different ways of categorisation. It was further noted that, consumers that do not have smart appliances may represent a significant proportion of consumers and so, should be added to the assessment. It was highlighted that there is a benefit to keeping this assessment simple. It was agreed however that there is value in defining customer types in this way and that it is necessary to consider the impact of policy decisions on all types of customers that do not have smart appliances.
An action was taken to update the Customer Matrix accordingly and to circulate it again to the group.
Action - To consider commercial customer types, including DG by - Zoltan Zavody
EU Network Codes
It was brought to the group’s attention that there are a series of codes that will become legally binding and enforced next year. National Grid has undertaken further work on these codes. However, more active participation is necessary from DNOs and other parties in this process as there is an opportunity to influence the outcome. DNOs were reminded that the opportunity to influence this process is short.
DCMF MIG22 Group
OD explained the work that the MIG is undertaking to introduce time of use tariffs for non-half hourly metered customers including domestic customers.
It is proposed to change the tariffs to reduce the discrepancy between being settled on a half hourly or non-half hourly basis and to set the tariff band at each voltage level. OD commented that for non-half hourly customers, the DUoS charges would still be based on profile data. JW queried the timescale of the change and the point was made that it may not be beneficial to introduce something that may need to be changed in 4-5 years.
OD stated that it is DNOs job objective to properly reflect the costs customers impose on the network to suppliers. OD highlighted that this would place a more cost reflective signal to suppliers which they could then decide whether to pass on to customers. However the point was raised that cost reflectivity needs to be balanced with other objectives and that there is currently a disincentive for suppliers to put customers on smart Time of Use tariffs. It was queried whether resources are being focussed in the right areas and it was highlighted that a proper cost benefit analysis will have to be undertaken to support this.
OD explained that the use of system charging methodology is governed by DCUSA. Consequently, any change process will include a full consultation with stakeholders.
An action was taken to convey the group’s concerns to the MIG.
Action - To convey the groups discussion on this issue by - Oliver Day
An update of the Storage Paper was provided by BS. He stated that Anthony Price had provided comments and once Ofgem has completed its storage paper, these two papers will be combined.
LM gave a summary of the work of the network on how they will utilise demand side response in the future, and on common understanding of who will use it and under what circumstances.
A report structure has been developed and the report will begin to be populated towards the end of the month and will be circulated to WS6.
Update on Electric Vehicles
The electric vehicle infrastructure strategy by the Department of Transport is being reviewed as ministers have indicated that they would take a more comprehensive view with a focus on the charging infrastructure. The strategy will set out how the government sees development of the electric vehicle market in years to come. The document will be published in July and it was requested to contact Ben Davison if members have any comments.
Action - Contact Ben Davison with comments at ben.davison@olev.gsi.gov.uk by - All
Discuss workshop structure (DNOs)
The workshop has been split into 3 days: domestic, non-domestic and generation. This will be interactive brainstorming sessions about customer engagement.
Potential dates for workshops (Ofgem/Rob McNamara)
The group is asked to provide comments on the outline for the workshop and it was noted that dates will need to be put into calendars as soon as possible.
Action - Provide comments as soon as possible on the outline for the workshop by - All
Ofgem to set out dates for Workshop.
The group agreed the date of the next meeting – 21st May 2013, 10-1pm