RP7 Stakeholder Consultation WEB - Flipbook - Page 6
Foreword
NIE Networks is the owner of the
electricity transmission and distribution
networks in Northern Ireland,
transporting electricity to over 900,000
customers including homes, businesses
and farms. We strive to be responsible
stewards of the electricity network so
that it continues to meet the wide and
varied needs of our customers, both
today and in the future.
The Northern Ireland energy system
is at a transformational juncture. In
December 2021, the Department
for the Economy (DfE) published its
‘Pathway to Net Zero’, setting a longterm vision of ‘net zero carbon and
affordable energy’ by 2050. This Energy
Strategy also committed to interim
2030 deliverables, including 70% of
electricity consumption from renewable
sources, 56% reduction (versus 1990
levels) in total emissions from energy
(power, heat and transport), and
doubling the size of the low carbon
and renewable energy economy to a
turnover of more than £2 billion.
Subsequently, a Climate Change Bill
was passed by the NI Assembly in
March 2022 and enacted into law in
June. This is Northern Ireland’s first
Climate Change Act, bringing us in line
with the rest of the UK and with the
Republic of Ireland (ROI). The Climate
Change Act makes a legal commitment
to net zero carbon emissions by 2050.
It also commits to 80% of electricity
consumption coming from renewable
sources by 2030, taking precedent
over the original target of 70% within
the Energy Strategy. With the addition
of a specific target of a 100% reduction
in carbon dioxide emissions, this means
effectively that the energy sector
requires to fully decarbonise by 2050.
Delivery of the Energy Strategy
presents a considerable challenge
for the energy industry, one that NIE
Networks is proactively embracing.
However, we remain acutely aware that
society is experiencing a serious cost
of living crisis and that rising energy
costs are a huge source of concern to
customers.
So, our aim is to strike a balanced
position in our future plans, which seek
to maximise the potential benefits from
investment in the electricity network and
transition to net zero carbon, without
adding to the financial hardship many of
our customers are facing.
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Northern Ireland Electricty Networks
Our vision is to provide an electricity
network that is capable of facilitating
Northern Ireland’s overall plan to
address climate change, which aims to
achieve net zero carbon and affordable
energy by ending our society’s reliance
on fossil fuels and its associated price
volatility.
It is in this context that we are
developing our plan for our next price
control period (RP7) for 2025 to 2031,
which will be a critical period on the
pathway to achieving net zero carbon
by 2050.
There is much to do to ensure the
network can meet the demands
associated with achieving net zero. To
that end, we are developing a RP7 plan
that will:
1.facilitate the decarbonisation of
society;
2.provide for a safe, reliable and
resilient network;
3.ensure our customers continue
receiving an excellent level of
service;
4.whilst aiming to do all of the above
at the least possible cost.
To achieve this, significant investment is
needed in the network during RP7 and
beyond.
Specifically, a significant step-change
is needed in the level of investment
required to facilitate the scale of
decarbonisation that has now been
mandated by government. These
are investments that will provide
increased network capacity to enable
our customers to connect low carbon
technologies. We will also need to
invest to enable government targets
for a greater proportion of electricity
to consistently and reliably come from
renewable sources (80% by 2030).
Another factor driving increased
investment is the age profile of the
network, and the associated condition
deterioration that can follow with
ageing assets. The initial development
of the electricity network in Northern
Ireland occurred in the 1950s and
60s, and much of the original network
that was built all those decades ago
remains. Many of these assets, now
upwards of 60 years old or more, are
in need or will soon need replacement
in order to maintain reliability of supply.
So, during RP7 and beyond we will
need to undertake a comparatively
larger programme of network renewal
than ever before.
Most importantly though, our plan
is designed to deliver meaningful
outcomes for customers – and, in
particular, our most vulnerable in
society – alongside meeting the
requirements of the Utility Regulator’s
Consumer Protection Programme and
Best Practice Framework. The plan
reflects the priorities of our customers,
identified through direct engagement
with them and with consumer
representative groups.
We have used extensive feedback from
a range of stakeholders over the past
six years to develop this plan. I am very
grateful that so many of you were willing
to share your views and expertise.
I would like to thank the Consumer
Engagement Advisory Panel which has
overseen this stakeholder activity. Their
contribution will undoubtedly lead to
improved outcomes for customers and
will ensure our plan is the best that it
can be.
Having a well-defined future view
is never easy – particularly in times
of uncertainty. However, we know
there will be pivotal shifts ahead for
energy in Northern Ireland. In the next
decade renewable energy will power
us even more than today. Batteries
charged using renewable energy (from
wind and solar farms) and energy
generated from customer homes will
help drive down emissions and save
customers money on their energy bills.
Home energy management systems
would help us consume less energy.
New technologies could change the
way we heat our homes and water.
Transport will be powered using
clean, green fuels. NIE Networks has
a key role facilitating these societal
shifts, ensuring that we can deliver a
sustainable energy system for all.
I hope that you find this consultation
useful and would welcome your
feedback. It will help to inform the
development of our final proposals for
RP7, which are due for submission to
the Utility Regulator in March 2023.
Derek Hynes
Managing Director, NIE Networks
