Energy Netwrks Assciatin ENA Demand Side Respnse Shared Services Wrking Grup Demand Side Respnse Shared Services Framewrk Cncept Paper Cnsultatin Respnse
Executive Summary... 3 Backgrund... 3 Purpse f this dcument... 4 High-level summary f respnses... 4 Assessment f respnses... 5 Clarificatin n the aim and scpe f the Demand Side Respnse Shared Services Framewrk... 5 Out f scpe... 5 Industry cnsultatin April May 2014... 5 List f respndents... 6 Respnse t cnsultatin questins... 7 Additinal cmments prvided... 9 Next steps... 11 Further cmments r questins... 11 With thanks... 11 DSR grup membership... 11 Transmissin Operatr and System Operatr view... 11 Distributin Netwrk Operatr view... 12 Secretariat... 12 Appendix 1 - Revised TR... 13 Page 2
Executive Summary Backgrund The electricity sectr is underging significant change as a key facilitatr in the transitin t a lw carbn ecnmy. The Distributin and Transmissin netwrk cmpanies are having t rethink hw they intend t build, perate and maintain the electricity netwrks. An area f significant interest t the netwrk cmpanies is Demand Side Respnse (DSR) whereby custmers chse t respnd t a signal t change the amunt f energy they cnsume frm the electricity netwrk at a particular time. DSR has the ptential t cntribute significantly t the transitin t a lw carbn ecnmy. It has the ptential t enhance security f supply, cntribute t sustainable energy develpment thrugh facilitating the lw carbn technlgy rll ut and can have a psitive impact (reductin) n the rate f grwth f cnsumer bills if managed/designed apprpriately. In April 2014, the Energy Netwrks Assciatins (ENA) issued a Demand Side Respnse (DSR) Shared Services Framewrk Cncept Paper fr industry cnsultatin. The paper was develped thrugh the cllabrative wrking f members f the ENA Demand Side Services Shared Services Grup (the DSR grup), which had the remit t gain an understanding: abut hw DSR is currently utilised by the Netwrk Operatrs; abut hw DSR culd be utilised (and the benefits t the different parties invlved); and n hw DSR resurces can be shared fr the benefit f DSR prcurers, DSR prviders and custmers in general. The DSR grup s key utput was the Demand Side Respnse (DSR) Shared Services Framewrk Cncept Paper, which cncentrates n DSR frm a netwrks perspective, fr thse cases when mre than ne netwrk party (Netwrk Operatr and System Operatr) want t access simultaneusly a resurce that prvides a DSR service. In rder t clarify the scpe f the wrk undertaken by this grup, the term Relevant DSR will be used fr this wrk. Relevant DSR is defined as thse instances f Demand Side Respnse where an interactin between the Netwrk Operatr and the System Operatr is likely (a typical example wuld be, but nt limited t, installatins that are able t prvide STOR cntracts t the System Operatr but is als able t help a Netwrk Operatr avid r defer netwrk reinfrcement). The Framewrk prvides: an verview f hw DSR is currently being utilised by Netwrk Operatrs and hw the utilisatin f DSR may ptentially develp in the future within the wide electricity market; a summary f a prpsed shared service mdel frm a netwrks perspective (wh uses it, when it is used and hw is it used); and a way frward in identifying the next steps f the initiative. The fcus f the DSR shared service framewrk is the interactin between the Netwrk Operatr and the System Operatr and their requirements fr shared DSR services, and cnsiders hw a Netwrk Operatr and the System Operatr culd prcure and utilise DSR services frm the same DSR prvider. Tw pathways were identified: Page 3
Asset sharing path when the DSR service has n detrimental impact n either party (NO r SO); Alignment path when the benefit frm the DSR service is exclusive t ne party and precludes anther party frm using it. The prpsals, irrespective f path, will enable increased market awareness and pprtunity fr DSR service prviders, whilst maintaining cmmercial freedm fr DSR service prcurers, given the individuality f DSR requirements within their cmpany. The prpsed framewrk is designed t facilitate greater pprtunity fr the DSR prvider when its services generate an interactin between the Netwrk Operatr and the System Operatr. This in turn culd bring greater chice and assciated cst benefits t DSR service prcurers. Althugh there is a difference as t when and hw the different pathways are utilised, bth f the ptins advcate cnsumer chice and prvide increased value fr mney fr end custmers. The full cnsultatin can be accessed via the ENA website: http://www.energynetwrks.rg/news/publicatins/cnsultatins-and-respnses/ Purpse f this dcument The purpse f this fllw-up dcument is t: prvide a brief verview f the framewrk and a link t the riginal cnsultatin; summarise and cmment n the feedback received, including a clarificatin n the scpe f the wrk f the DSR grup; and prpse next steps in relatin t which aspects t take frward int mre detailed prpsals and ptentially trials. High-level summary f respnses respndents were bradly supprtive f the DSR industry parties service requirements. the DSR grup aimed t address the DSR framewrk issues frm a Netwrk Operatr and System Operatr perspective nly and in thse cases where there is an interactin riginating frm the need t utilise the same DSR prvider simultaneusly. sme respnses indicated that mre clarity n the scpe f the wrk f the DSR grup was needed and the DSR grup aims t clarify this with its respnse. it is encuraging t see that all respndents supprted the develpment f a shared services framewrk. there is supprt fr cnsulting with wider stakehlders in any future wrk which may include but is nt limited t energy suppliers, aggregatrs, Ofgem and DECC. sme respnses suggested the Asset Sharing path is mre able t reach ptimal usage f relevant DSR in the lnger term with the Alignment path easier in the shrt term. chice must reside with the DSR prvider and custmers shuld be free t chse their rute t market i.e. whether t participate in a sharing framewrk cntract r cntract nly with either the Netwrk Operatr r System Operatr. there was cnsensus that limited incentives are currently available t attract DSR prviders and thse that are available are ften cmplex in structure. several respndents expressed disappintment at the DSR Grup s decisin nt t lk int the dmestic sectr. Due t the scpe f the DSR grup, which is lking nly at relevant DSR that generates interactin between Netwrk Operatrs and the System Operatr, dmestic DSR falls utside the scpe f this wrk. it was highlighted that a demnstratin r trial is a sensible next step t the wrk carried ut s far. Page 4
Assessment f respnses Clarificatin n the aim and scpe f the Demand Side Respnse Shared Services Framewrk Frm sme f the respnses received t the cnsultatin, the DSR grup feels it is necessary t further clarify the scpe f the wrk f the DSR grup. The DSR grup was established t prvide an electricity Netwrk Operatr (distributin, transmissin and system) perspective f hw DSR culd be utilised by different netwrk parties. The wrk f the DSR grup cncentrates n DSR frm a Netwrk Operatr s perspective, fr thse cases when mre than ne netwrk party (Netwrk Operatr and System Operatr) want t access simultaneusly a resurce that prvides a DSR service. The main fcus is the interactin between the Netwrk Operatrs and the System Operatr and their requirements, and cnsiders hw Netwrk Operatrs and the System Operatr culd prcure and utilise DSR services frm the same DSR prvider. The DSR grup has set ut a ptential sharing framewrk under which the electricity Netwrk Operatrs are able t jintly access DSR resurces simultaneusly. The DSR grup acknwledges that there is significant debate and fcus n DSR thrugh varius industry frum and cnsultatin. The DSR grup s wrk prvides a netwrk perspective n hw t realise the value f DSR acrss multiple cntractual netwrk parties which adds t and infrms the wider industry discussins n DSR. Given the existing market arrangements, the pending intrductin f dmestic smart meters and remit f the netwrk cmpanies price cntrl, the scpe f the shared services framewrk is currently fcused n netwrk cmpanies develping DSR services t the Industrial and Cmmercial cnsumers. The fcus is n an apprach that wuld wrk in the nearer term; in the RIIO-ED1 and RIIO-T1 price cntrl review perids and is intended nt t require market changes r significant system develpment. The lnger term view is being cnsidered by Ofgem thrugh its Smarter Markets wrk and Wrkstream 6 f the Smart Grids Frum. Out f scpe Due t its nature and ptential t deliver significant savings fr many energy participants, as well as help achieving lw carbn gals, the wide-ranging cncept f Demand Side Respnse is being lked at and develped by several industry grups and multiple innvatin initiatives. Fr the avidance f dubt, the fllwing areas are ut f scpe fr this grup: all instances f DSR where n interactin ccurs between System Operatr and Netwrk Operatr; dmestic DSR, given existing market arrangements, pending intrductin f dmestic smart meters and remit f netwrk cmpanies price cntrl; ecnmic analysis f the use f DSR: ecnmic signals, pricing, price elasticity, etc; capacity market and the pssible participatin f DSR services in this market r similar; and bilateral r cmmn industry-wide cntracts between the Netwrk Operatr and the custmer wh is prviding DSR services. Industry cnsultatin April May 2014 The prpsed DSR shared service framewrk prvides a pragmatic apprach fr develping the Relevant DSR market, fr thse cases that generate an interactin between the Netwrk Operatr and the System Operatr. The framewrk was submitted fr industry cnsultatin n the 16 th April 2014 with Page 5
a deadline fr reply f May 16 th 2014. The cnsultatin was submitted t ver six hundred Lw Carbn Netwrks Fund Cnference delegates wh include suppliers, academia, generatrs, gvernment, technlgy and regulatin amngst thers. In additin t this the cnsultatin was submitted t relevant representatives f the Smart Grid Frum and ther industry stakehlders. The cnsultatin psed eight key questins t the industry, designed t stimulate discussin and gather wider pinin. These questins and the cllated respnse t them are set in the next sectin. List f respndents 1. Sustainability First 2. The Electricity Strage Netwrk 3. BEAMA 4. Pyry 5. UK Demand Respnse Assciatin 6. Silver Spring Netwrks 7. Siemens 8. Scttish and Suthern Energy Pwer Distributin 9. UK Pwer Netwrks 10. Lndn Pwer Assciates 11. Electralink 12. ITM Pwer 13. Salient Systems 14. UK Pwer Reserve Page 6
Respnse t cnsultatin questins Q1. D yu agree with the DSR service requirements fr each ptential industry parties? If 'n' please prvide an alternative view including explanatin. Respndents were generally supprtive f the DSR industry parties service requirements. Sme respnded negatively t the prpsed brader marketplace, lnger term develpment f capacity markets and prcurement f DSR services. Hwever, the DSR grup felt that there may have been sme misunderstanding f the questin and have revised the Terms f Reference (TR) fr the DSR grup t prvide clarity and included this as appendix 1. The DSR grup identified a cnstraint related t limited parties invlved in the wrk. The DSR grup s bjective was t address the issues fr the Netwrk Operatr and System Operatr t wrk under a single framewrk. This des nt set any precedent r preclude any participant s invlvement r ther multi party sharing agreements in future wrk. The DSR grup als agreed that the framewrks prvide a shrt term temprary slutin which will ptentially evlve and des nt serve t define the market fr years t cme. Q2. D yu agree that the electricity netwrk peratrs shuld develp a shared services framewrk? It was encuraging t see that all respndents supprted the develpment f a shared services framewrk. It was suggested that further develpment f the detail f the framewrk, and ptentially a trial invlving Netwrk Operatrs and the System Operatr t prve the viability f the cncept wuld be beneficial prir t the prpsed extensin f the cntributrs t include energy suppliers and ther stakehlders. A respndent suggested that Ofgem and DECC shuld be facilitating the prcess f determining a shared services framewrk. This, again, wuld be smething that culd be explred further nce the apprach has been develped further. Q3. Hw d the pathway mdels interact with yur understanding f hw DSR is being prpsed t be utilised by ther parties such as suppliers, ESCOs, aggregatrs, 3 rd parties? The majrity f respnses were supprtive f the prpsals; hwever sme cncerns were raised with the lack f energy supplier input int the prpsal. Energy suppliers were invited t respnd t the cnsultatin and Netwrk Operatr respnses were received relating t DSR sharing and the value chain. Anther respnse cmmented n the perceived lack f invlvement frm LCN Fund participants; hwever the cnstituent members f the DSR grup have access t the LCN Fund r Netwrk Innvatin mechanisms 1 and the DSR Grup nte the need t name the membership in this and future publicatins. In additin t this the LCN Fund Cnference mailing list was used t distribute the cnsultatin. The imprtance f keeping Smart Grid Frum WS6 updated with prgress f the framewrk s develpment was als highlighted. It shuld be nted that a number f updates have been given t WS6 as the wrk has prgressed and it is prpsed that this apprach will cntinue. Q4. Hw d the pathway mdels interact with ther prpsed DSR sharing framewrks that yu may be aware f? 1 http://www.smarternetwrks.rg/prject.aspx?prjectid=404#dwnlads Page 7
The majrity f respndents agreed that this is the nly framewrk f its kind in existence in the UK. One respndent raised cncerns with the lack f engagement with the Ofgem Smarter Markets team. On the 17 th June 2013 representatives f the DSR grup met with and presented the develping framewrk t the Ofgem Smarter Markets team and it was agreed that this framewrk is cnsidering an apprach fr the near term whilst the Ofgem Smarter Markets team is cnsidering the RIIIO-ED2 perid. Q5. D yu have a preferred ptin n the prpsed paths as t hw a shared services framewrk shuld be structured and perated? Please prvide an explanatin. A mixed pinin n the ptimal pathway was received. It is perceived by the DSR Grup that the Asset Sharing path is mre able t reach ptimal usage f DSR lnger term, with the Alignment path easier in the shrt term. The majrity f benefits frm the Alignment path wuld be btained thrugh a mdel that supprted bth sharing methds. Sme respndents agreed that bth ptins culd wrk with further develpment. In additin t this input, a single respndent stated that the framewrk is nt fit fr purpse but did nt ffer a clear explanatin fr their view. In terms f infrmatin and cmmunicatin, respndents stated the Alignment path requires adequate infrmatin flw between the prvider, Netwrk Operatr and System Operatr n all cntracts. Fr the Asset Sharing path, it was put frward that there is a need t ensure the avidance f anti-cmpetitive cllusin between System Operatr and Netwrk Operatr. Bth paths have been develped with the underpinning principle that the chice f whether t participate in a sharing framewrk cntract must always reside with the prvider and that custmers shuld be free t chse their rute t market. In respnse, the DSR grup wuld like t clarify that any prpsed sharing framewrk wuld nt create any necessity fr a DSR participant t utilise this framewrk t ffer services t multiple parties, and its purpse is t remve current barriers and facilitate the ptin fr thse wh wish t participate. One respndent highlighted the ptential fr wider engagement and suggested the input f DECC and/r Ofgem in defining and determining the framewrk. It was als prpsed that there is a need t assess benefits against csts, taking int accunt the whle value chain and that in any case this shuld be adaptable as t encmpass the requirements f a develping Smart Grid. Q6. Frm the pint f view f the cnsumer, what d yu see as the biggest barrier and the biggest incentive t participating in DSR prgrammes that adpt these mdels? (Please nte the scpe f the paths is limited t Industrial & Cmmercial cnsumers). Respndents raised an issue with the cmplexity and lack f incentives available fr DSR services. One respndent raised cncerns regarding adequate incentives fr I&C custmers and the Netwrk Operatr skill set fr cmmercial develpment f DSR. In respnse, the framewrk aims t determine the principles f a DSR framewrk. N detailed designs r values have been determined fr DSR cst/payments. It is nt within the scpe f the wrk grup t attempt t establish a set value fr DSR participatin and this is likely t be assessed by each Netwrk Operatr in the develpment f their apprpriate use case within the cntext f their wider business plans. Q7. Hw culd the mdels be adapted t align with future DSR resurces such as dmestic cnsumers fr example? Respnses t this questin indicate that in sme instances it may be t early t tell, althugh thers suggest the need fr a different apprach invlving the cnsideratin f additinal markets. It was highlighted that there is a need t cnsider the wider stakehlders including suppliers. The DSR grup des nt disagree with this view and sught energy supplier input, hwever nne came frward t get invlved in the prpsed DSR framewrks at that pint. In future these framewrks may be f greater interest. It was suggested that dmestic DSR is limited in applicatin at this time, but there is a lnger term ambitin fr its applicatin. The current view is t cntinue t address the active market actrs and Page 8
barriers within the present scpe. The DSR grup will therefre maintain its fcus n industrial and cmmercial applicatin but it is thught that the principles wuld be valid fr the eventual invlvement f dmestic custmers when this market develps. Q8. What wuld be the mst effective methd fr ENA t develp and test these prpsed mdels? The majrity f respndents highlighted that a trial r demnstratin prject wuld be the next lgical step fr this wrk. A number f these suggested that a cllabrative prject culd be carried ut under LCNF r NIA/NIC funding mechanisms. The develpment f the framewrks with the use f Netwrk Operatr and System Operatr data shuld be sught in rder t effectively test the principles prpsed. A number f respndents suggested that wider stakehlders shuld be cnsulted with and brader wrking grups utilised in rder t further develp the framewrks and any future cllabrative prject. The DSR grup agree with the need t address a wider crss sectin f stakehlders in any next steps wrk. Additinal cmments prvided This sectin highlights the wider cmments received that d nt directly address ne f the cnsultatin questins. 1. One respnse suggests a flaw in restricting the framewrk t nly I&C prviders and believes it shuld be expanded t include dmestic cnsumers. They als suggested a detailed breakdwn f financial flws shuld be included. The DSR grup feels that the cmment related t the restrictin t I&C custmers, was due t a lack f clarity in relatin t the scpe f the DSR grup. The DSR Grup is nly lking at the interactins between Netwrk Operatr and System Operatr in thse instances where they want t utilise the same DSR service prvider simultaneusly. Fr dmestic custmers, it is unlikely that the vlume is such that the System Operatr wuld be interested in using them fr system stability, and therefre the DSR service wuld nt be shared, and it wuld fall nly under the Netwrk Operatr. A brader scpe fr lking int DSR in general is being analysed elsewhere (WS6). 2. One respndent queried what is the exact bjective f DSR in the UK as the dcument fails t spell this ut. The DSR grup fcussed n the interactins between Netwrk Operatr and System Operatr and created tw DSR framewrks. The DSR grup did nt set ut t define the bjective f DSR in the UK. Other aspects f DSR have being discussed elsewhere, see, fr instance, Ofgem s Demand Side Respnse materials under the smarter market prgramme: https://www.fgem.gv.uk/electricity/retail-market/market-review-and-refrm/smarter-marketsprgramme/demand-side-respnse 3. One respnse cmmented n the need fr apprpriate data sharing and brader pprtunities such as capacity markets. While the DSR grup agree this is an imprtant area fr DSR, this extends beynd the scpe f the DSR grup s TR. The DSR grup acknwledges that the initial TR were nt sufficiently clear in the scpe and the TR have been amended and a new versin f the DSR grup s scpe is included in the appendix f this paper fr clarificatin. 4. One respnse highlighted general supprt fr the framewrk but expressed disappintment that lad reductin f renewables were nt selected fr inclusin. Anther respndent made a similar cmment in relatin t electricity strage. Page 9
There is n explicit separatin f DSR types, i.e. generatrs behind the meter r true demand reductin/shifting, within System Operatr balancing services r ptential Netwrk Operatr services. It was therefre ut f scpe and nt within the TR t make any special review r arrangements fr these sub sectrs althugh the principles f the sharing framewrk are likely t apply t ther similar appraches. 5. Anther respndent raised cncerns regarding value fr mney in the use f DSR versus traditinal infrastructure investment. Ecnmic analysis f the use f DSR is utside f the scpe f the grup as the framewrk is intended fr use when a need case fr DSR has already been established. 6. A number f respndents ffered a statement f psitive supprt fr the prpsal. 7. Finally ne respnse agrees with what the dcument set ut t d, but feels it des nt g far enugh and believes the reprt shuld have included the electricity supplier perspective. As mentined previusly, the DSR grup invited suppliers t cntribute t this reprt, but they did nt take up the ffer the ne respnse received frm a supplier fcussed n the dmestic aspect, which was utside f scpe at this stage. Page 10
Next steps The prpsed next steps fr the DSR grup are utlined belw: Respnse t April May 2014 cnsultatin Highlight next steps and shrt and lng term appraches t alignment and sharing paths Take frward next steps fr develping the alignment path, which include: Prpse cntract changes t facilitate the alignment path Create detailed alignment path methdlgy Develp a matrix t highlight interactins with existing innvatin prjects fcused n the delivery f lw carbn technlgies and slutins frm UK and/r internatinal prgrammes that have, within their existing scpe, prpsals that wuld cntribute t the develpment f the alignment path prpsed by the DSR grup. Identify the remaining gaps in develping the next level f detail in the alignment path and prpse hw these culd be filled, including the prcesses assciated with the pathway Develp the next level f detail regarding sharing f infrmatin with netwrk peratrs Identify pprtunities fr demnstratin prjects and/r desk tp analysis/scenari testing funded by innvatin mechanisms t ptentially be taken frward at a later date Cnsultatin dcuments and summary f respnses fr each key stage that requires stakehlder inputs. Further cmments r questins Any further questins r clarificatin n this dcument shuld, in the first instance, be directed t: Anthny Bivens (anthny.bivens@energynetwrks.rg), Energy Netwrks Assciatin, 6th Flr, Dean Bradley Huse, 52 Hrseferry Rad, Lndn, SW1P 2AF. With thanks The DSR grup wuld like t take this pprtunity t thank all thse wh have taken the time t respnd t this cnsultatin phase and lk frward t develping this wrk further with the additinal perspective yu have prvided us. DSR grup membership The DSR Shared Services Wrking Grup membership is as fllws: Transmissin Operatr and System Operatr view Natinal Grid (TO and SO) Page 11
Scttish Hydr Electric Transmissin Scttish Pwer Transmissin Distributin Netwrk Operatr view Electricity Nrth West Limited Nrthern Pwergrid Scttish & Suthern Pwer Distributin Scttish Pwer UK Pwer Netwrks Western Pwer Distributin Secretariat Energy Netwrks Assciatin Page 12
Appendix 1 - Revised TR ENA Demand Side Respnse Shared Services Grup Terms f Reference v8-31/10/2014 1. Intrductin and Scpe Demand Side Respnse (DSR) is being actively discussed in many areas within the electricity market as a tl which can be utilised by multiple parties t assist in: Balancing energy prtflis; Balancing supply and demand in electricity netwrks r aiding their regulatin within frequency and vltage limits; Deferring and/r aviding netwrk investment thrugh addressing netwrk cnstraint issues. This Grup cncentrates n DSR frm a netwrks perspective, fr thse cases when mre than ne netwrk party (Netwrk Operatr and System Operatr) have a requirement t access simultaneusly r exclusively a resurce that prvides a DSR service. The main fcus is the interactin between the Netwrk Operatr and the System Operatr and their requirements, and hw the Netwrk Operatr and the System Operatr culd prcure and utilise DSR services frm the same DSR prvider. The initial wrk f the Demand Side Respnse Shared Service Grup prvided a perspective f hw DSR may be utilised by different netwrk parties and hw DSR services culd be develped in an inclusive manner that culd allw multi-party use f a single DSR asset. The grup develped the Demand Side Respnse Shared Services Framewrk prpsal which utlined tw appraches: 1. Asset sharing path when the DSR service has n detrimental impact n either party (NO r SO); 2. Alignment path when the benefit frm the DSR service is exclusive t ne party and precludes anther party frm using it. Fllwing the develpment f this framewrk, a cnsultatin was carried ut frm April May 2014 which invited cmment frm a wide range f key stakehlders. Pst cnsultatin the grup agree that there is scpe fr further wrk in this area, which will be beneficial t all electricity netwrk peratrs, and which will be cvered by a secnd phase f wrk. 2. Purpse and Aim The aim f develping this Netwrk DSR Shared Service Framewrk is t establish a set f cntractual rules and prcesses t facilitate multiple electricity netwrk peratrs being able t utilise DSR frm the same prviders in a manner that delivers the best end cnsumer benefit in security and cst. The grup wants t further develp the understanding gained frm previus wrk 2 thrugh the fllwing actins: Develp the next level f detail n hw netwrk peratrs can share DSR assets, including n the cntractual arrangements, prcesses and timescales Develp principles n hw shared DSR can be utilised Cnsider, in the cntext f DSR fr shared netwrk purpses: 2 http://www.energynetwrks.rg/mdx/assets/files/news/cnsultatinrespnses/cnsultatin%20respnses%202014/demand%20side%20respnse%20cncept%20pape r_revised.pdf Page 13
Unblcking cntractual restrictins Interactins with the custmer Shrt and lnger term appraches (and the likely timescales fr each perid). The Grup cmmits t cnsult with key stakehlders at each stage f key develpments. 3. Out f Scpe Due t its nature and ptential t deliver significant savings fr many energy participants, as well as helping t achieve lw carbn gals, the wide-ranging cncept f Demand Side Respnse is being lked at and develped by several industry grups and multiple innvatin initiatives. Fr the avidance f dubt, the fllwing areas are ut f scpe fr this grup: All instances f DSR where n interactin ccurs between System Operatr and Netwrk Owner. Dmestic DSR, given existing market arrangements, pending intrductin f dmestic smart meters and remit f netwrk cmpanies price cntrl. Ecnmic analysis f the use f DSR: ecnmic signals, pricing, price elasticity, etc. Capacity market and the pssible participatin f DSR services in this market r similar. Bilateral r cmmn industry-wide cntracts between the netwrk peratr/wner and the custmer wh is prviding DSR services. 4. Deliverables Respnse t April May 2014 cnsultatin Highlight next steps and shrt and lng term appraches t alignment and sharing paths with implementatin timescales Take frward next steps fr develping the alignment path, which include: Prpse cntract, prcess changes and timescales t facilitate the alignment path Create detailed alignment path methdlgy, including timescales Develp a matrix t highlight interactins with existing innvatin prjects fcused n the delivery f lw carbn technlgies and slutins frm UK and/r relevant internatinal prgrammes that have, within their existing scpe, prpsals that wuld cntribute t the develpment f the alignment path prpsed by the grup. Identify the remaining gaps in develping the next level f detail in the alignment path and prpse hw these culd be filled, including the prcesses assciated with the pathway Develp the next level f detail regarding sharing f infrmatin with netwrk peratrs Identify pprtunities fr demnstratin prjects and/r desk tp analysis/scenari testing funded by innvatin mechanisms t ptentially be taken frward at a later date Cnsultatin dcuments and summary f respnses fr each key stage that requires stakehlder inputs. 5. Reprting The grup will reprt t the ENA Electricity Netwrks and Future Grup (ENFG) and the Chair f the grup will update the ENFG members at each meeting. The grup will prvide regular updates t DECC s and Ofgem s Smart Grid Frum Wrkstream given the clse interactin in tpic area. 6. Membership & Lgistics Page 14
All ENA Electricity members, wh have an interest in demand side respnse, are invited t attend and actively participate in the grup: Each ENA Electricity Member Cmpany may appint ne r mre representative(s) t sit n the grup; The grup will appint an ENA Member Cmpany representative t chair the grup (nminally NGET representative); The secretariat fr the Grup will be prvided by the ENA; Additinally the grup may ffer membership t external stakehlders (as and when apprpriate). The grup will meet n a regular basis and nrmally meetings will be held at the ENA Offices, Lndn. Fllwing each meeting, the ENA secretariat will ensure that a recrd f actin ntes is cmpleted and where necessary dcuments are circulated and actins fllwed up. 7. Cmpliance The Grup will at all times cmply with the requirements f the 1998 Cmpetitin Act and will nt deal with any matter which will r is likely t prevent, restrict r distrt cmpetitin r cnstitute an abuse f a dminant psitin as cnstrued within the Act. Page 15