RP7 Stakeholder Consultation WEB - Flipbook - Page 47
6.2 I mportant areas of reform
that are outside of RP7
There are 3 areas of reform that our
customers have told us are critical to
achieve decarbonisation of our society.
These areas of reform require input from
the Utility Regulator and Department
for the Economy. NIE Networks
is advocating for transformational
change in electricity network tariff and
connections charging arrangements in
the context of delivering the government
energy strategy including:
1. Tariff reform;
2.Reform of charging policy relating to
new distribution connections;
3. Smart metering.
We continue to engage with Utility
Regulator and DfE to voice customer
feedback on the importance of reform in
these critical areas.
The DfE Energy Strategy commits to
carrying out a Cost Benefit Analysis
in relation to smart metering during
2022. The Utility Regulator Approach
Document for RP7 states that, pending
the outcome of this work, it expects
NIE Networks to develop its business
plan based on the current approach to
metering and that it intends to include a
re-opener mechanism in the RP7 price
control to address future decisions on
smart metering.
Given the potential introduction of
smart metering during RP7, there
may be an opportunity to adopt a
‘low regrets’ approach to metering,
which may reduce the overall costs of
metering in the event that smart meters
are rolled out during RP7. Examples of
this would be in relation to meters for
new supplies and meters which are due
to reach the end of their recertification
life during RP7 and will be required to
be replaced.
•Under the current approach to
metering (consistent with RP6),
‘non-smart’ meters would be
installed which, in the event of
smart meters being rolled out
during RP7, would need to be
replaced by a meter with smart
functionality at a future date.
A ‘low regrets’ approach, under which
newly installed meters with capability
to become smart meters at a later date,
is likely to result in higher costs than
the current RP6 approach based on
installing ‘non-smart’ meters, however
this ‘low regrets’ type of approach
would also be expected to result in
overall lower costs in the event of a
smart meter roll-out.
Q21. Do you think a ‘low regrets’
type of approach should be
considered for metering in RP7?
•Under a ‘low regrets’ approach
to metering, meters with smart
functionality could be installed,
which could operate in ‘non-smart’
mode, but would have the capability
for smart functionality to be turned
on at a future date, in the event of a
smart metering roll-out.
There are 3 areas of reform that our
customers have told us are critical to achieve
decarbonisation of our society.
RP7 Stakeholder Consultation
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