We were approached on behalf of the owner of an industrial park who provided its customers with a range of utilities, including steam and electricity. The park owner was in the process of renegotiating prices and was concerned that some of their customers may look to reduce or avoid supply from them by seeking supply by third parties through connecting to the public grid. They were particularly interested in their obligations to customers and the compliance and regulatory processes they would need to go through.
We supported the park owner in two phases. First, we held a workshop where we gave an overview of private network regulatory arrangements, discussed options for setting network charges and explained the pros and cons of each type of network charging tariff arrangement. This supported the customer with the necessary information and guidance to make a decision on the most appropriate charging methodology.
The second phase was provision of a formal Use of System charging methodology. For this we produced a methodology, a report describing the options and the process of considering and selecting a preferred option through the first phase, and a workbook that produced charges for all onsite users based on the agreed option. We also provided regulatory documents for submission to Ofgem.
Our support enabled the client to be confident that it was compliant with applicable regulations and could continue to engage with its customers positively.
