Regulatory treatment of CLASS as a balancing service in RIIO-ED2 network price control

Read More..

In our distribution system operator reforms we are clarifying the role of distribution network operators (DNOs) in contestable markets and ensuring DNOs neutrally procure grid operational services and facilitate the development of – and coordination between – flexibility markets.  As part of these reforms, we need to make decisions about what activities DNOs are allowed to do – and with what regulatory treatment. For example, we have made clear that DNOs cannot operate storage or act as commercial aggregators.

In this consultation, we set out and invite views on our minded-to position for the regulatory treatment in RIIO-ED2 of DNOs providing network voltage control and network management services, via the remote management of deployed network assets, to the ESO for its balancing services activity. This service is commonly known as Customer Load Active System Service (CLASS). We explain the options we have considered and the analysis that has informed our initial view.

Responses to this consultation can be submitted to flexibility@ofgem.gov.uk, alternatively we are piloting an online portal for consultation responses to streamline the process. The online portal for responses is linked here . The deadline for responses is the 23rd March 2020.