Nov 2018
Electricity Distribution
ENWL 021
Nov 2018
May 2020
Electricity North West Limited
Tracey Kennelly
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Network Innovation Allowance
ED - Network improvements and system operability
Asset Management
Identification of the VoLL multiplier effect, the socialisation of investment costs and the practicalities of implementing a revised model.
Phase A – strategy:

·         Optimise the VoLL decision making tool by providing guidance on the appropriate combination of VoLL drivers and the requisite level of sophistication and aggregation.

·         Identify, evaluate and incorporate appropriate forecasting features to future proof the model / demonstrate stability/variability over time.

·         Deliver an understanding of the relative value of investment to prevent an event vs that of managing the consequence of the event.

·         Undertake analytics to identify the appropriate network scale to which the differentiated VoLL value should be applied.

·         Develop sample investment plans to understand options for implementation and potential impact on affordability and quality of outcomes for different customer segments.

·         Engagement with key industry stakeholders to  identify implications, formalise an appropriate VoLL decision making tool and establish a strategy for transition to national implementation, identifying regulatory mechanisms currently or potentially driven by a VoLL function. 

Phase B – customer:

·         Determine the increased sense of equity and DNO service provision that can be achieved through implementation of a differentiated VoLL model.

·         Quantify the impact of scale and duration of an outage on VoLL

·         Deliver an understanding of the societal value of investment to prevent an event vs that of managing the consequence of the event

·         Measure societal acceptance of a differentiated VoLL model, segmented by customer need

·         Substantiate which segments are perceived by society to have the greatest need

·         Quantify the likely effects of a differentiated VoLL investment model on society, now and in the future.
The scale of financial benefits to customers will be a key deliverable from the research – Customers will inform us of the VoLL and therefore what appropriate compensation would be for accepting a lower level of reliability.