We believe that early competition can help to generate a wide range of ideas for solutions to system needs, and these may bring net benefits for consumers. For these competitions to be effective they should be open to as many potential solutions as possible, including proposals from the full range of both network and non-network options.
In the RIIO-2 Sector Specific Methodology Decision in May 2019, we requested that the Electricity System Operator (ESO) develop an Early Competition Plan.
To progress this, we need to do further work to scope early competition. For example, what are the underlying components, what are the roles and responsibilities of different industry parties and what would be needed to implement early competition? The ESO’s Early Competition Plan will accordingly help us to establish the next steps on early competition.
We request that the ESO submit the Early Competition Plan to us by February 2021. Following its submission, we will assess the plan and decide on next steps on early competition.