Innovation in Electrical Distribution Networked Systems: A Good Practice Guide

During the development of the Distribution Price Control Review (DPCR) that took effect on 1 April 2005, Ofgem proposed two new incentives: the Innovation Funding Incentive (IFI) and Registered Power Zones (RPZ).  As part of its proposals, Ofgem made it a requirement for a distribution network operator (DNO) to have in place a good practice guide toinnovation management if it wishes to access the IFI and/or RPZ incentives.

In the interests of efficiency, the DNOs co-operated to produce a single industry-wide Good Practice Guide (GPG) that, following Ofgem approval, was adopted by all the DNOs. The DTI agreed to provide funding for the production of the GPG: Engineering Recommendation G85, Version 1, 2005 was the result of this process.

During the negotiation for the Transmission Price Control Review (TPCR) that took effect on 1 April 2007, and following the success of the introduction of the Innovation Funding Incentive to DNOs, a similar IFI scheme was established for the Electricity Transmission Licensees and Gas Transmission Licensee. Agreement at the ENA R&D Working Group was given to the creation of a common GPG considering solely IFI for electricity distribution, transmission and gas transmission networks; the result of which is the document ER G85. Further information and guidance for the electricity distribution RPZ mechanism is provided in both Appendix B of GPG and the Regulatory Instructions and Guidance (RIG).

Network operators should, where they consider it appropriate, have their own internal management systems that complement the GPG. However, it is intended that the GPG will establish a common code of practice across the industry and deliver a sense of coherence between the companies.

A ENA Research and Development (R&D) Working Group with representation from all UK DNOs and TSOs has been set up to implement the requirements of the GPG, to establish a common code of practice and ensure coherence between the member companies.

This publication is free to download and use. However, please note this technical document remains © Energy Networks Association and must not be altered in any way.