Smart Metering Forum: The DCC Roadmap. Chris Rowell 30 November 2011
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1 Smart Metering Forum: The DCC Roadmap Chris Rowell 30 November 0
2 The Data & Communications Company What we know about the DCC What we would like to know about the DCC What the DCC will need to do DCC
3 The DCC Commercial and Regulatory Relationships Legislation: new DCC licensable activity Gas Act Electricity Act Licence: single document which constitutes a DCC licence under both acts. Conditions governing behaviour DCC Licence DCC Codes & Contracts: The DCC provides its services to users under the SEC and procures the capability to provide them from the DCC Service Providers Contract SEC DCC Service Providers DCC Users
4 The DCC s key stakeholders DECC Ofgem Licence Award Procurement & contract management DCC SEC Licence Oversight Delivery of service & Charging DCC Service Providers DCC Users 3
5 Key Dates for the DCC Response to Prospectus Consultation 30 March 0 Baseline plan key milestones Draft technical specification complete July 0 EU notification period for the technical specification complete First tranche of regulatory obligations come into force, including: Mandated rollout completion date Installation code of practice Jan 0 Q 0 DCC Licence application process commences Q 0 Smart change of supplier arrangements become standard Q4 0 DCC Licence Awarded Q4 0 DCC service providers appointed Q4 0 Start of mass rollout Q 04 Parallel procurement of the DCC & DCC service providers SP procurement - government initiated - DCC to conclude 4
6 Key Dates for the DCC Service Providers Pre-Qualification Questionnaires 9 September 0 Main stages in the service provider procurements Stages Issue (OJEU) contract notice Issue pre-qualification questionnaire (PQQ) 9 September 0 Select Suitable Bidders Issue invitation to participate in dialogue (ITPD) to selected bidders Begin Dialogue Phase. Qualification Issue invitation to submit outline solutions (ISOS) Assess outline solutions (Bidders may be shortlisted) Issue invitation to submit detailed solutions (ISDS). Dialogue 4 Oct Assess detailed solutions (Bidders may be shortlisted) Close dialogue and issue invitation to submit final tender (ITSFT) Bidders submit final tenders Evaluate final tenders and select preferred Bidder(s) Award contract 3. Final Tender Submission 5 selection of preferred bidders towards end 0
7 The shape of the DCC DCC Regulatory & Commercial Consultation 9 September 0 0 Discussion Proposals - Questions Proposed Regulatory Approach to the DCC 9 DCC Licence Conditions 48 Revenue Requirements 3 Charging Methodology 9 Core Services WAN Requirements 3 Performance incentives 5 Adoption of Foundation Stage Communications Contracts 5 Competitive licence application process 4 Nov uk/pages/smart metering.aspx the activity of contracting with all licensed domestic gas/electricity suppliers in Great Britain to provide, in respect of every smart meter installed at every domestic premises which is supplied with gas/electricity by each such supplier, a service by virtue of which information may be communicated by and to that meter on behalf of the supplier 6
8 Incentives KISS Outputs (not inputs) Carrots & Sticks 7
9 Weeks from start PQQ response writing PQQ to be published with selection criteria ahead of the official start Proposed Licence award timeline Evaluation Criteria and Weightings PQQ assessment 6 ITA response writing ITA Assessment Optional BAFO Only 4 weeks given for response to the ITA. This includes Due Diligence on the SP contracts BAFO to be taken if there are two or more comparable leading bidders after Tender 4 Licence finalisation DECC Process Applicant Process 6 6 Numbers relate to weeks Joint Process 6 6 month end-to-end process
10 How will we learn more? Q4 0 Q 0 Q 0 DCC Consultation ConsultaCloses tion Closes Consultations DCC on: Consulta Prohibition Order Licence Closes Licence Award Process Smart Energy Code (DCC Obligations) DCC Consulta tion Closes DCC Award Starts Roles & Responsibilities DCC DCC SPs DCC Users - SMIP 9
11 DCC 0 Year Roadmap DCC Contract Go Active Go Live DCC +0 Implementation DCC Metering Metering Mass Roll Out Foundation Stage Contract Adoption Re-award SP Re procurement? Communications Services y 9-5 (+5) / Data Services y 7-9 (+5) Metering Full Operation Data Collection & Aggregation DCC Plus Central Registration Smart Grids Services (09+) Start up Roll out Optimise 0
12 Start Start up Up Establish Services Security Assurance BPO Recruit & Train Understanding the Foundation Communication Contracts Costs & Charging Reporting (readiness) DECC Industry SEC Panel Ofgem Contract Assimilation Data Communications Testing (SMIP DCC)
13 Roll Roll out Out Service Management Reporting (roll out) DECC Industry SEC Panel Ofgem Change Management Central Registration +/3 years Costs & Charging Facilitating the Roll Out Take On Foundation Communication Contracts
14 Optimise Optimise Service Management Service Provider Re-procurements Reporting (service) DECC Industry SEC Panel Ofgem Change Management Costs & Charging DCC Licence Award Data Collection & Aggregation? Additional Services 3
15 The Longer Picture CRITICAL DEVELOPMENTS Rapid expansion of inflexible / less flexible generation (intermittent renewables and nuclear) in conjunction with retirement of flexible coal generation Expansion of demand response Localised electrification of heating and transport Localised penetration of distributed energy Potential inclusion storage Widespread electrification of heating and transport Potential widespread penetration of distributed energy resources includes distributed generation, demand response and storage Increasing penetration of vehicle to grid The only constant is change! Source: Electricity Networks Strategy Group A Smart Grid Roadmap Feb 00 4
16 Thank You Chris Rowell
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