Consultation on changes to the Stakeholder Engagement Incentive Guidance Document

Publication date
6th February 2014
Closing date
20th March 2014
Policy areas
Status

DNOs, GDNs, TOs and other interested parties

Dear Stakeholders,

Changes to the Stakeholder Engagement Incentive Guidance Document

We introduced a Stakeholder Engagement Incentive for the current electricity distribution1 , gas distribution2  and transmission3 price controls.

This consultation seeks views on changes to the Stakeholder Engagement Incentive Guidance Document.

Background

The Stakeholder Engagement Incentive is intended to encourage electricity distribution network operators (DNOs), gas distribution network operators (GDNs) and Transmission Operators (TOs) to engage effectively with a wide range of stakeholders and use the outputs from this process to inform how they plan and run their businesses.

The Stakeholder Engagement Incentive Guidance Document specifies the application process, submission format and assessment process for the Stakeholder Engagement Incentive.

Consultation

We are seeking stakeholder views on changes we are proposing to make to the Stakeholder Engagement Incentive Guidance Document.

Annex 1 includes a modified Stakeholder Engagement Incentive Guidance Document (with tracked changes from the 2012-13 electricity distribution Stakeholder Engagement Incentive Guidance Document in Annex 2). Separate guidance documents will be issued for electricity distribution, gas distribution and transmission.

The main changes to the document have the effect of -

  • Providing more guidance on the amount of supplementary information that a company should submit under the Stakeholder Engagement Incentive.
  • Adding a mechanism to give us the ability to ask supplementary questions on a company’s Stakeholder Engagement Incentive submission, before making a decision about whether it has met the minimum requirements.
  • Removing references to specific regulatory years and specific types of network company.

The reason we are proposing these changes is to –

  • Ensure that the volume of information presented is manageable.
  • Allow us to us to clarify any queries about a company’s submission before making a decision on whether it has met the minimum requirements.
  • Ensure consistency across all forms of the Stakeholder Engagement Incentive and reduce the number of changes required each year.

Subject to consultation responses, we propose that the revised Stakeholder Engagement Incentive Guidance Document will take effect on 30 April 2014, in time for the 2013-14 assessment of stakeholder engagement in summer 2014.

This document constitutes notice as required by paragraph 1E.27 of Special Condition CRC 1E (Incentive adjustment in respect of the Broad Measure of Customer Satisfaction) of the gas transporter licence (for gas distribution), paragraph 2C.10 of Special Condition CRC 2C (Stakeholder Satisfaction Output) of the gas transporter licence (for gas transmission) and paragraph 3D.10 of Special Condition CRC 3D (Stakeholder Satisfaction Output) of the electricity transmission licence.

Consultation Responses

Responses should be sent to connections@ofgem.gov.uk by 20 March 2014. Unless clearly marked as confidential, responses will be published on our website. We will then review consultation responses and issue the revised Stakeholder Engagement Incentive Guidance Document.

Yours faithfully,

James Veaney

Head of Distribution Policy

1 The current electricity distribution price control is called Distribution Price Control Review 5 (DPCR5).
2 The current gas distribution price control is called RIIO-GD1.
3 The current transmission price control is called RIIO-T1.