Network regulation is changing, along with incentives, risks and trade-offs for owners and system operators.
The UK is moving towards outputs and innovation-based regulation, with an increased drive for customer and stakeholder engagement. The regulator’s focus is on price regulation based on total expenditure (totex) rather than separate controls on capital expenditure (capex) and operating expenditure (opex).
The role of system and network operators is changing, requiring greater co-operation, business restructuring and the development of new capabilities. Competition is also being introduced in traditionally monopolised activities.
We work with a number of organisations to help them understand the implications of new regulatory models for their businesses, and to support their regulatory submissions.
We undertake benchmarking exercises, analyse options surrounding integrated transmission planning, forecast system operation costs to support the development of incentive schemes, and manage price control processes.
For non-regulated parts of network businesses, we advise on new investments in interconnection, and support regulatory and commercial arrangements. We also advise new entrants on competitive parts of the market.
Viewpoint: The future role of network operators: The emerging active DSO model
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