What next

We have developed our initial business plan and are now refining the propositions. The business plan has, in part, been produced using the comprehensive ‘Willingness to Pay’ exercise which will continue to guide our thought processes as we create a network to serve you. This consultation gave you the chance to have your say and to make a real difference to our future plans. We will be submitting a draft plan in July 2021 ahead of a final plan in December 2021.

nxtStep

Whilst our engagement plans have had to be adapted due to the COVID-19 pandemic, there are a variety of online engagement activities planned where you can get involved – visit our events page here.

Alongside our 16 performance areas, we have identified three key cross-cutting enablers which underpin the successful delivery of our plan. Innovation, digitalisationFocused digital and technology agenda that supports the integration of digital technologies to improve Northern Powergrid’s everyday business activities and our people will be paramount as we continue to be an anchor organisation in the community while transitioning to a low carbon future.

We know you will want reassurances around our plans. To ensure that you can be confident in the robustness and feasibility of our propositions, we will be continuing our conversations with you throughout the entire price period and beyond, to deliver an energy network and a service that meets your needs.

Building reassurances around our plan

We know you will want reassurances around our plans to give you the confidence that what we propose is robust and feasible. We are developing reassurances in seven areas:

1. Reassurances
What we’re going to show you
Outcome

Prove we're the right people for the job

  •   How we’re doing against our RIIO-ED1 targets

  •   Service improvements we have delivered in RIIO-ED1

  •   How we have tested and benchmarked our plans to ensure they are robust and ambitious

✓ You will clearly be able to see our track record

Develop this plan with you and continue to engage

  •   Our programme of engagement with you

  •   What we have heard from you and how it has influenced our plans

  •   Ongoing work with our CEG and the challenge group

✓ You will see comprehensive, evidenced and robust engagement

Deliver for the regions & different customer groups we serve

  •   How our plan reflects our geographic regions and network users

  •   Outline our local goals, such as supporting the low carbon transition

✓ You will see how our plan reflects the regions we serve

Make sure this plan is deliverable

  •   Show that we can deliver our plan and that we have sufficient resources both internally and in our supply chain

✓ You will know we can deliver our plan

Demonstrate our plan is financeable

  •   Ensure financeability on both a notional and actual capital structure basis

✓ You will know we can finance our plan

Set out our costs and outputs clearly and prove they are efficient

  •   Set out the associated costs of our plans and evidence of efficiency

  •   Test costs for ambition and accuracy

✓ You will clearly see our costs and have confidence that they are efficient

Make sure this plan is resilient to uncertainty and risk

  •   Outline our understanding of the key strategic uncertainties and risks facing our business

  •   Outline our proposed uncertainty mechanisms

✓ You will feel comfortable that our plan is resilient to uncertainty and risk

Our current thinking on managing uncertainty and risk in our plan...

Right now, the biggest uncertainty we can see is the speed of uptake of new technologies like heat pumps or electric vehicles. We have proposed that our regulator should include a new mechanism that adjusts our cost allowances upwards (or downwards) based on a “£ per device” measure. This way our customers would never have to pay too far ahead of using the devices, different regions of the country would be able to progress their roll-outs at rates that suit them, and we would have a strong incentive to invest early where the investment case is strong. Beyond this, we think our regulator’s current mechanisms to handle uncertainty are broadly still the right set for 2023-28.