Policy paper

Energy network codes review: workshop agenda, February 2019

Updated 22 July 2019

Agenda - 4 February 2019

Time Agenda items Description
10:30‑11:00 Registration Light breakfast
11:00‑11:15 Welcome and introduction David Capper (Deputy Director - Energy Security, Networks & Markets, BEIS)

Welcome to stakeholders and short introduction/setting the scene.
11:15 Review objectives, scope & timelines Working level overview – Alena Fielding (BEIS)/Lesley Nugent (Ofgem):
– Review objectives - criteria for a better framework;
– Scope - what questions are we asking;
– Review timetable;
– Plan for the day/what we want to achieve.
11:30 Session 1

Is the current framework of rules fit for purpose for the future energy system?
Presentation 1: Damon Rand (Community Energy Prospector, CEPRO) - new entrant/innovator perspective on the existing framework (10mins)

Presentation 2: BEIS/Ofgem – spectrum of options for change (10 min)

Presentation 3: Elexon/National Grid/Electralink (30mins):
– Scope for code consolidation and reforming code content;
– The case for Code Managers/Delivery Bodies and possible scope, including parties’ performance and compliance;
– Performance assurance in an increasingly complex, data-driven world.

Presentation 4: Jon Dixon (Ofgem) – Case Study: Retail Energy Code (10mins):
– applying the above in practice
12:30 Lunch Break and refreshments
13:15 Break-out discussion 1

(format: tables of 8-10 participants, facilitated by Ofgem/BEIS)
Questions and issues to explore in this session:

Purpose of codes: is the current approach still appropriate for all the areas of rules in the energy system (i.e. are there alternatives to the multi-lateral contracts?)
Content of codes: is the content & structure of codes up-to-date, relevant and applicable, and whether and how it may be improved (including through use of technology); views on code consolidation.
Non-traditional market participants: do the current arrangements work for new business models? how can we make sure the framework is accessible for all parties and future-proof it?
Code governance: What could be the role of a Code Manager (Should it include performance assurance function? Should they have a power to raise code modifications?)
14:00 Session 2

Are the current governance arrangements effective, and are the roles and responsibilities appropriate?
Presentation 1: Gemserv - risk-based approach to regulation (10mins):
– Examining current arrangements and what else could be done with a risk-based approach

Presentation 2: Principle-based regulation (10mins)

Presentation 3: Jon Dixon (Ofgem) – Case Study: Retail Energy Code (10mins):
– Applying the above in practice

Presentation 4: Eric Brown (Energy Catapult) - the case for strategic oversight (10min):
– Strategic direction and oversight – a missing function?
14:50 Break-out discussion 2

(includes 10 min coffee break)

(format: tables of 8-10 participants, facilitated by Ofgem/BEIS)
Questions and issues to explore in this session:

Landscape of rules: does the current spread of rules & codes and various parties roles work (industry, Ofgem, BEIS)? is the present balance of industry self-governance/regulation appropriate?
Fundamental change: initial views on new approaches to regulatory framework: can principle-based/risk-based approach to regulation work in the energy sector?
Strategic oversight and direction: is this a missing function and who is best to fulfil it? Responsibilities/ powers/ accountabilities.
15:50 Session 3

Sum up of day and next steps.
Alena Fielding (BEIS)/ Lesley Nugent (Ofgem) – thank you and general observations from the day, final questions.
16:10 End