Oct 2015
Electricity Distribution
Value of Lost Load to Customers
Oct 2015
Oct 2018
Electricity North West Limited
Electricity North West Innovation Team
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Network Innovation Allowance
Customer engagement research across the full range of DNO customers:

Domestic customers (Qual ECP and Quant): General, worst served customers, Vulnerable customers, fuel poverty, adopters of LCT, heavy users (targeted by tariff type)

SMEs: (Qual ECP and Quant) * Targeted at industries with heavy reliance on electricity

Stakeholder engagement (Qual depths): Ofgem, DECC, Citizens Advice Bureau, Local government (resilience forums), charities (such as British Red Cross), police, fire brigade, Housing associations, Emergency services, hospitals, care homes, airports and other transport hubs

* Large I&C customers are not a primary focus of this survey as they are likely to have provisions in place for dealing with lost load (such as generators)

This research aims to quantify the value of dead load/ loss of supply to customers.  This will be achieved by answering the following research objectives:
1. What is the impact on customers of lost load?
2. What is the value of this impact - financial and social costs to customers in £ per kw?
3. How does this vary by customer type, currently all customer types are treated uniformly?
4. How can Electricity North West and key stakeholders mitigate the costs of lost load to customers?
5. How will this vary with LCT adoption?

The project success criteria are:
  • An understanding of customer impact, how value is defined and how this might be influenced (eg better communications)
  • A credible segmentation and future VoLL model by key customer groups (curves) to guide investment decisions
  • A demonstration of how these values would help ENW to better plan their network investment strategy.
  • Guidance on customer compensation strategies