QMEC actions on release of unused capacity

We said we would participate in the QMEC actions on withdrawal of network capacity from slow moving projects, communicate the outcomes and implement any necessary policy and process changes.

“For all DNOs we have looked for proactive work in relation to releasing unused capacity. We strongly welcome NPg’s recognition of this issue. We look forward to supporting NPg where we can, and hope NPg can also learn from other DNOs on this issue, for example from WPD’s experiences in setting milestone targets within a connection offer.” 
Dr Graham Pannell, RES.

Customers told us they supported a previous commitment to proactively identify and unlock underutilised capacity from our connected customers; they wanted us to continue pushing for unused capacity held within slow moving contracts to be released and made available to the wider market.

On our network there are instances where some customers are sterilising network capacity by either not progressing their projects to completion, or by reserving more capacity than they actually need. Within the traditional form of contracts, DNOs have no discretionary power to take action to ensure that customers release unused capacity but there is a national drive to secure the withdrawal of network capacity from slow moving projects, which is being led by the DG-DNO steering group as part of Ofgem’s QMEC initiative.

Within our 2016/17 ICE work plan we made a commitment to continue to participate in the actions being driven by the DG-DNO steering group in respect of QMEC and we have played, and continue to play a very active role in the drive to change the working practices of all DNOs across GB networks. We also outlined our intention to communicate any outcomes to our customers and implement any necessary process or policy changes resulting from these actions that would facilitate better management of slow moving contracts to release unused capacity. 

In October 2016 we added four further actions to our work plan to address recommendations originating from QMEC and in each case we have delivered upon these commitments;

• contribute to the ENA best practice guide on fair contract milestones;
• implement standard contract milestones into connection offers;
• implement standard contract milestones to recover capacity from projects after a maximum build-out period, and;
• proactively contact all EHV and HV customers utilising less than 75% of their maximum export capability