Mid-Year Review Panel Report 2018-19

Publication date
22nd October 2018
Information types
Policy areas

We introduced a new regulatory and incentives framework for the Electricity System Operator (ESO) in April 2018. The ESO Performance Panel plays a central role in this new framework. It will challenge the ESO’s plans before the start of the year, evaluate its performance after 6 months (the ‘Mid-Year Review’) and then perform a final evaluation at the end of the year. This forms a recommendation to the Authority on incentives.

Mid-Year Review Meeting

The MYR meeting took place on 20th November 2018 in Central London. The day consisted of an open morning session where the ESO provided further clarification to it’s Mid-Year Report and set out its evidence and views on its performance to date. The slides from this morning session have been published below. The afternoon session was an opportunity for the Panel to directly question or seek clarification with the ESO. The following week, the Panel convened again to make its assessment of the ESO’s performance over the first 6 months of the year. As the secretariat for the panel, we have published this report detailing the Panel’s mid-year assessment for 2018-19.

Performance Panel members

We have selected a Performance Panel for the 2018/19 MYR consisting of 3 industry representatives, 3 independent experts, a consumer representative and an Ofgem chair.

•Ofgem chair: Cathryn Scott, Director Wholesale Markets

•Consumer representative: Citizens Advice (rep: Richard Hall)

Our selected trade bodies and their chosen representatives are:

•The Association of Decentralised Energy (rep: Chris Kimmett)

•The Energy Networks Association (rep: Stephanie Anderson)

•Energy UK (rep: Kyle Martin)

We have also appointed three independent experts who bring a wide range of knowledge, skills and experience to the Panel:

•Prof. Jon Stern – Jon has decades of experience working as economist on energy sector issues, including system operation. He also brings extensive experience working on panels, most recently for the Competition and Markets Authority.

•Ian Tait – Ian has extensive executive level experience on regulation and performance analysis. He brings valuable cross-sectoral experience as a Director at the Water Industry Commission for Scotland, as well as previous energy experience working as a transmission system manager at Scottish and Southern Energy.

•Robert Hull – Bob brings over 30 years’ experience of leadership in UK and international energy. This includes previous roles as a Managing Director at Ofgem as well as gaining direct electricity system operation and engineering experience at National Grid.

Future Panel arrangements

Our key consideration in finalising the membership of the panel was to make sure that its members brought a broad spectrum of knowledge, skills and experience in order to effectively evaluate the ESO’s performance. We have aimed to select industry representatives that will be able to represent a diversity of stakeholder views. Similarly, for this first panel meeting, we have also been conscious of the need to keep its size manageable so that it functions effectively.

We fully expect there will be lessons we can learn from the first panel meeting and MYR process. We plan to keep the structure and administration of the panel under review during the first year, and we will make any necessary refinements along the way. We may also consider expanding the size of the panel in future, particularly if we feel there are additional areas of knowledge that are not being captured.