Introduction: A number of different regulatory frameworks could be adopted. Each has its advantages and disadvantages. National Grid, being a regulated entity, has significant experience of the regulatory frameworks to which it is subject. From this, the key areas of interest are:

• To assess whether the current Critical National Infrastructure regulations adequately and appropriately ensure that National Grid mitigates the risks in the current state; that is,  are the current regulatory frameworks fit for purpose?

• As National Grid and the energy industry across Europe moves towards the future state, analyse whether the current regulatory frameworks are flexible and adaptable enough to manage these changes;

Which regulatory structures would be better in the current and future states? And can we look at examples elsewhere in the world or in other industries?

Objectives:

The purpose of this work is to provide recommendations to the European Regulators of CNI systems in order to the most appropriate regulatory approach to cyber-security in respect of electricity transmission systems.

Expected Benefits:

• Overview of GB transmission system requirements related to cyber security.

• GB Transmission System Threat Assessment and Policy framework background.

• Economic models and analysis of optimal incentive approaches and schemes; policy white paper; raised awareness in the industry, leading towards consensus.