RP7 Stakeholder Consultation WEB - Flipbook - Page 8
1. Executive Summary
Introduction and
context for RP7
The RP7 period (2025-2031) will be
critical in enabling the changes in the
electricity network necessary to achieve
the goals set out in the Department for
the Economy’s Energy Strategy and
the recently enacted Climate Change
Act. Our proposed plans for RP7 are
intended to deliver transformational
impact for our customers during this
period.
We are embarking on the most
significant change in the design,
management and operation of
the electricity network since rural
electrification in the 1960’s. A net
zero carbon future will necessitate a
much greater role and dependency on
electricity in society, with the expected
need for the rapid electrification of
heat and transport a key requirement.
Enabling this change will require
significant development in the capacity
of the existing network, alongside
further development to ensure adequate
capacity for the increasingly diverse mix
of renewables that will emerge.
In April 2021, NIE Networks published
its strategy paper titled ‘Networks
for Net Zero’1, setting out our views
on the options and pathways for
decarbonisation in Northern Ireland
and how electrification can play a
key role in a flexible and integrated
decarbonised energy system. The
journey to net zero is already impacting
customer reliance on our electricity
network, with the past decade seeing
an unprecedented uptake in customers
installing renewable generation and
low carbon technologies (LCTs) such
as electric vehicles (EVs), solar panels,
wind generators and heat pumps.
Our ‘Networks for Net Zero’ Report
highlighted the need to place
customers at the forefront of the energy
transition. We believe the transition
will benefit all customers through
minimising future network costs in
the delivery of a low carbon economy.
Furthermore, a more digitalised and
flexible network will provide customers
with the ability to make informed
decisions on energy efficiency and
opportunities for active participation in
new markets.
This requires a change in the nature
and role of NIE Networks to a
“Distribution System Operator” (DSO)
focused on delivering whole system
and customer benefits through the
facilitation of access to markets and
minimising future network costs in
the delivery of a low carbon economy.
During RP6 we started work to
transition to a DSO, beginning with
publication of our DSO roadmap in
December 20192.
We are now planning for our next
price control period (RP7) which, in
line with the decision taken by the
Utility Regulator on its approach to
RP73, is expected to run from 2025
to 2031. Through this consultation,
we are proactively seeking the views
of our stakeholders on our current
proposals prior to finalising our RP7
plan for submission to the Utility
Regulator in March 2023. This will, in
turn, commence a regulatory process
to determine target outcomes and cost
allowances for the RP7 period. Whilst
there remain uncertainties as to the
pace and precise nature of where and
when this investment is needed, we
plan to work with the Utility Regulator
to ensure that the RP7 price control
framework has sufficient flexibility and
agility to enable required investment to
be delivered in a timely manner.
RP6 stakeholder
engagement
During RP6, we have engaged
extensively with our customers through
various mediums (including surveys,
stakeholder workshops and focus
groups) to explore the views and
behaviours of both the domestic and
non-domestic customer population.
This has helped us to gain a better
understanding of the impact of
our decisions on various customer
segments and has informed our
future investment priorities: to focus
on matters related to (1) customer
service, (2) network performance, (3)
environmental performance and (4) our
future strategy.
This engagement has helped paint a
picture of evolving customer priorities,
which we are reflecting in our plans for
RP7.
We remain committed to listening and
responding to stakeholder feedback
in the run up to the submission of our
final RP7 business plan to the Utility
Regulator in March 2023 and beyond.
This consultation is your opportunity to
tell us your views and to help us shape
our future plans.
1
https://www.nienetworks.co.uk/documents/future-networks/networks-for-zero-net.aspx
2
https://www.nienetworks.co.uk/documents/future-networks/greater-access-to-the-distribution-network-in-nort.aspx/
3
https://www.uregni.gov.uk/files/uregni/documents/2022-07/2022-07-06%20RP7%20final%20Approach%20Document%20final.pdf
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Northern Ireland Electricty Networks