APPOINTMENT OF RIIO-2 CHALLENGE GROUP, MEMBERS

Transcription

1 APPOINTMENT OF RIIO-2 CHALLENGE GROUP, MEMBERS AN INTRODUCTION JUNE 2018

2 AN INTRODUCTION Ofgem is the independent energy regulator for Great Britain. Protecting the interests of existing and future consumers is at the heart of what it does. Ofgem does this in a variety of ways including: promoting value for money; promoting security of supply and sustainability, for present and future generations of consumers, domestic and industrial users; the supervision and development of markets and competition; and regulation and delivery of Government schemes. You can find out more about Ofgem on its website. Find out more about the organisation and how it is governed here, and about how it works and its approach to regulation here. RIIO-2 CHALLENGE GROUP When Ofgem first implemented the RIIO framework in 2011 it placed greater emphasis on engagement. This has led to better, more effective, engagement between network companies and their stakeholders. For RIIO-2, Ofgem wants to see further improvements to ensure the companies plans for the future align with consumer needs in a rapidly changing world. To do this, Ofgem is strengthening the role stakeholder engagement plays in the process of setting price controls. Further information on its approach to stakeholder engagement for RIIO-2 is available in its recently published guidance document. Ofgem will amend the guidance document from to time to reflect the developments in enhanced engagement. In addition to the customer and user groups that the network companies are required to set up, Ofgem is establishing a RIIO-2 Challenge Group, which will operate through the entire price control setting process. The RIIO-2 Challenge Group will focus on the following areas (including but not limited to): assess, scrutinise and challenge the companies plans from the view of existing and future consumers, with a focus on sustainability, affordability and the protection of vulnerable consumers; consider how companies might respond to the overall price control framework once it is set. This will help Ofgem to understand the risk that some elements could have a stronger/weaker impact on company behaviour than we might anticipate; consider and challenge aspects Ofgem s policy proposals for regulating each sector and whether they are likely to drive outcomes that are in the interests of existing and future consumers; be independent and operate at arm s length from Ofgem and the network companies. The RIIO-2 Challenge Group will be supported by Ofgem who will provide secretarial and induction support. Ofgem expects the network companies to engage with the RIIO-2 Challenge Group from the outset and in parallel with their own Customer and User Groups. The RIIO-2 Challenge Group is expected to receive and provide feedback on early drafts of network company business plans, to allow companies to update their plans before final submission to Ofgem. The RIIO-2 Challenge Group s main output will be in the shape of a publicly available final independent report accompanying the network companies business plan submissions. This report will be expected to focus on setting out areas of agreement and disagreement between the group and the network operators. It is important that the Group highlight in their report areas where they have challenged the company, and how the company has responded, and any parts of the business plan that they disagree with. This will inform our assessment of companies business plans.

3 The information contained in the report will feed into Ofgem s assessment of company business plans and will provide the regulator with additional evidence to inform its final decision-making. The RIIO-2 Challenge Group will also likely have the opportunity to play a central role in open hearings to discuss areas of contention in the companies business plans once these have been submitted. THE ROLE Ofgem is recruiting independent members for the RIIO-2 Challenge Group. Crucially, all group members will act as individuals The RIIO-2 Challenge Group will operate as a single committee and in the appointment of individual members we will seek to bring a balance of expertise and knowledge covering a range of relevant issues. PERSON SPECIFICATION In providing insight into the strategic implications for consumers during the development of the next round of price controls, it is expected that members will have current, or recent past experience in the following areas: Academia Commercial Banking or finance Engineering Consumer protection Digital/technology KNOWLEDGE AND EXPERIENCE For all positions, candidates will be required to meet the following minimum requirements: Proven experience of working effectively as part of a team at board level and/or in a high profile committee; Strong analytical skills and the ability to understand and interpret price control related information and data; A track record of significant achievement in, and relevant experience of, consumer issues and/or public affairs; and Demonstrable understanding and/ or experience of economic regulation, gas, and/or electricity sectors is desirable, but not essential. SKILLS AND ABILITIES Ability to successfully challenge opinions and assumptions, identifying creative and innovative solutions to complex problems; Excellent interpersonal and communication skills, allowing effective input to group discussions; and The ability to work constructively and collaboratively as required with Ofgem, the chairs of the various network company user and customer engagement groups, and the network companies themselves. In addition to the above criteria, candidates will be required to demonstrate their expertise in one of the following areas: Academia A significant body of research relating to Regulatory Economics, Regulatory Finance, Regulatory Policy and/or Energy.

4 Commercial Excellent commercial awareness and experience of providing commercial expertise in a regulatory or infrastructure development context; Experience in high profile commercial negotiations for large scale infrastructure development and in particular in a regulatory or Public Private Partnership setting. Banking or Finance Considerable experience of and exposure to the key financial issues relating to the finances of network operators:- o The cost of capital; o The financeability of the companies and the rating assessments made by the rating agencies; and Significant practical knowledge and understanding of corporate financial plans and reports. Engineering Extensive experience in gas networks/electrical power systems engineering in a senior capacity; In depth knowledge of the application of price controls within gas networks/power systems; Insight and feedback with regards to new and emerging power systems/gas systems technologies and processes; In depth knowledge of the energy industry, products, and services; and In depth knowledge of legislative issues and regulatory matters relating to the energy sector. Consumer Protection Extensive experience in consumer related fields acting as the voice of the consumer in a senior capacity; Working knowledge of the energy sector and the challenges facing energy consumers; Experience providing Voice of the Consumer insight and feedback in regards to competition submissions and technologies; Working knowledge of energy the industry, products, and services; and Working knowledge of consumer protection issues and legislation relating to the energy sector. Digital/Technology Background in bringing and/or growing technology driven business, particularly in the energy sector, to the market place; and A background in physical sciences would be desirable but not essential. TERMS OF APPOINTMENT These roles will be remunerated. The appointments will last 18 months initially, until at least December 2020 (ahead of the April 2021 start of the electricity and gas transmission and gas distribution price controls), with potential extension to December Ofgem expects meetings to take place as follows: Period Price control Estimated number of meetings July 2018 December 2020 Electricity Transmission 10 to 12 meetings Gas Transmission

5 Gas Distribution July 2020 December 2022 Electricity Distribution 10 to 12 meetings Meetings will be one or two days and require preparation and reading prior to attendance. Including meeting attendance, we expect members of the RIIO-2 Challenge Group to dedicate c. two to five days/ month. Time commitment will be discussed in full details with successful candidates prior to appointment. In addition, the RIIO-2 Challenge Group members may also likely be requested to attend open hearings to discuss areas of contention in the companies business plans once these have been submitted. RIIO-2 Challenge Group meetings will be held in London at Ofgem s Canary Wharf offices. Occasionally, meetings may be held at other locations. All candidates will be required to declare any potential, actual or perceived conflicts of interest between their work, their background or their financial interests on the one hand and their role as RIIO-2 Challenge Group Members on the other. Equal Opportunities As an employer Ofgem is committed to equality. Ofgem wants to be an organisation that people are proud to be part of. Ofgem welcomes applications from all people across all sections of our diverse communities. Ofgem aims to ensure equality of opportunity in its employment practice and processes. This is irrespective of disability, gender, age, marital status, sexual orientation, race, colour, nationality, ethnic or national origins, religion or religious affiliation, working pattern and responsibility for dependents. Ofgem believes that every employee should be treated with openness, honesty and respect. Ofgem won t tolerate unfair treatment or discrimination. Ofgem aims to have a workforce that reflects the diverse community that it serves. Ofgem values and makes the best use of this diversity of talent, so that its people fulfil their potential and create the conditions for business success. HOW TO APPLY Saxton Bampfylde Ltd is acting as an employment agency advisor to Ofgem on these appointments. Candidates should apply for this role through our website at using code QORDD. Click on the apply button and follow the instructions to upload a CV and cover letter. The closing date for applications is noon on 28 June If you are unable to apply through the website, please belinda.beck@saxbam.com quoting reference QORDD.