Gas Network Output Measures Methodology Consultation

Publication date
6th November 2015
Closing date
4th December 2015
Policy area

The Network Output Measures Health & Risk Reporting Methodology & Framework sets out the overall process for assessing condition based risk and specifies the parameters, values and calculation methods to be used. The collective outputs of the assessment, used for regulatory reporting purposes, are known as the Network Output Measures.

When approved this methodology will require GDNs to re-align their current processes and practices to this new standard. GDNs will also need to re-baseline their Network Output Measures consistent with the methodology for the RIIO-GD1 period.

When adopted, GDNs will be required to report annually against the targets set using the methodology. These reporting requirements are set down in Section 9 to the RIIO-GD1 Regulatory Instructions and Guidance (RIGs).

The RIIO regulation regime seeks to move to a more output based measurement of the drivers for network business plans. One such measure is in the development of a measurement of the health and risk associated with assets and subsequently the impact the proposals/investments in business plans make upon the health and risk of the assets over the regulatory period.

A risk assessment and reporting solution is proposed in order to ensure health management is appropriate to the needs of the Gas Distribution Network. This process identifies the potential impact arising from the unavailability or failure of a network’s assets through the assessment of the consequence and risk associated with such failures. Risk values are represented in monetary terms as a “common currency” for comparison between different failure types and Asset Groups. This defined common currency for the statement of asset risk is subsequently referred to as Monetised Risk throughout this document.

The Asset Health and Risk Assessment process based is described in the methodology together with the assumptions needed to project the current assessment forward to future years.