Consultation on submission received under the RIIO-ED1 Innovation Roll-out Mechanism window 2

Publication date
7th June 2019
Closing date
5th July 2019
Policy area
Status

We have received a submission from Electricity North West Limited (ENWL) for a Relevant Adjustment under the Innovation Roll-out Mechanism (IRM) of £15.09m (2012/2013 prices).

The current price control for electricity distribution network licensees (RIIO-ED1) includes a reopener provision for licensees to apply for an adjustment to their allowances in relation to innovation roll-out expenditure. Additional funding will qualify if the activity meets the criteria in CRC 3D of the Special Conditions.

ENWL has completed an ‘eta’/’Smart Street’ innovation project funded by the Low Carbon Network Fund, aimed at using real time optimisation software to simultaneously manage high (HV) and low (LV) voltage network assets in response to consumer demand.  ENWL is now applying to use the IRM to deploy their ‘Smart Street’ system to 180 distribution substations and their associated low voltage networks. 

The proposal aims to increase the efficiency of the specified network area in order to manage additional future demand without the need for additional capacity, and to manage the changes in voltage levels predicted through greater uptake of low carbon technologies.  

The roll-out involves a combination of optimisation software using real time measurement data to manage voltage on the LV network, meshing distribution transformers with On Load Tap Changers, and LV Circuit Breakers and switches, to create an integrated system that allows real-time network reconfiguration.

We will assess ENWL’s submission and determine whether the proposed roll-out and costs are appropriate, meet the published criteria, and are in the interests of existing and future consumers.

This consultation seeks views on ENWL’s submission to make use of the IRM to fund the roll out of innovative technologies on parts of their electricity distribution network. Please send responses to RIIO-ED1@ofgem.gov.uk on, or before, 5 July 2019. A non-confidential version of the submission is published below. 

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