Valuing Social Initiatives in the Energy Sector
The electricity Distribution Network Operators (DNOs) are required to deliver ongoing outcomes as a part of their Stakeholder Engagement and Consumer Vulnerability (SECV) programmes. Ofgem further requires that these are prioritised according to robust customer preferences and valuations.
In past years the DNOs have adopted different approaches to meet this need. One of the companies, Western Power Distribution, worked with Accent from the outset to develop a stated preference based framework and approach which was then also subsequently pursued in collaboration with UK Power Networks. In the light of the positive response from Ofgem to this methodology, it was decided that the next round of valuations should be provided by an Accent-coordinated stated preference programme for all of Great Britain’s DNOs.
Eighteen potential SECV initiatives were tested in this research and monetary valuations were successfully estimated for all. These were analysed for the DNO companies as a whole so that their business cases to Ofgem were underpinned by consistent valuations using a consistent methodology.
“This was a very significant piece of work for the GB electricity distribution network companies and the results will be used across the sector. Accent worked closely with the industry to understand this challenge and deliver a tailored research approach to address it. They delivered a really helpful framework along with key insights that we are using to redefine our strategy; the results will directly influence our future plans and help to raise service standards for customers”Alex Wilkes, Western Power