EVALUATION

AN INDEPENDENT EVALUATION OF THE LCNF
ANNEX B – RESPONSES OF PROJECT PARTNERS
B.1 Success of the LCNF
B.1.1
LCNF Meeting its Objectives Regarding Innovation as Business as usual
(Q1.1)
Questions:
Do you believe that the LCNF has met its objective in incentivising the DNOs to
include innovation as part of their core business?
What justification do you have for your response?
B.1.1.1 Summary of Responses
The general consensus was positive in that over half of the respondents that replied to
this question felt that the LCNF had met the objective. One respondent commented on
the difficulty of convincing DNOs to trial any new concepts previous to the LCNF if the
financial return was not obvious.
The main point that can be taken from the responses to this question is that although the
LCNF has definitely incentivised DNOs to be more innovative, work still needs done to
ensure more projects progress from the trial stage to business as usual.
Some respondents think that the objective been partially met – but it is too early for the full
effects to be realised regarding including innovation as business as usual.
B.1.1.2 Positive Responses
A respondent pointed out a good example one of the projects that has transitioned to
business as usual, referring to UKPN Plug and Play. As a result of the project several
DNOs have been rolling out Active Network Management schemes allowing easier
connection of distributed generation (wind or solar generation) to the network. Two
respondents mention that the LCNF was essential for the DNOs to meet the RIIO-ED1
targets.
Three respondents the degree of learning that has emerged as a result of the LCNF.
Another respondent made a similar point mentioned how useful that disclosure of the
project outcomes, plans and annual progress reports are as sources of information. The
response carries on to say that some DNOs have included the implementation of
successful outcomes from completed projects in their RIIO ED1 plans, with ANM being
one of these.
One respondent stated that there has been a positive culture change – continuing on to
say that there has a been a major shift towards innovation with DNOs now more open to
change where there is a business benefit. This same respondent also believed that having
the regulator drive the LCNF has been beneficial in helping companywide buy-in, focus
and purpose to innovation projects.
B.1.1.3 Challenges to meeting the objective
A reservation of a quarter of respondents was the lack of ideas that have been fully
adopted into business as usual. One of these respondents pointed out that one of the
PÖYRY MANAGEMENT CONSULTING
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