EVALUATION

AN INDEPENDENT EVALUATION OF THE LCNF
• aware of it through their place in the market;
• aware of it as they owned a DNO business at the start of the process and involved
from the outset in the SGF as a supplier;
• aware of it through the workshops Ofgem ran for supply chain on the LCNF;
• aware of it at an early stage; and
• unaware at outset but became apparent soon after.
A further respondent made the point that some elements of the scheme such as the tiered
structure and the RIIO cycles could have been made clearer – as not all parties are aware
of funding of licensee businesses.
B.3.1.3 How to Get Involved in the Scheme
Around half of those that responded indicated that the information gave them an
understanding of how to get involved.
Three respondents found that it was not so clear how to get involved in the scheme, with
one of them saying that without the utility approaching them they would not have known
how to get involved, and another saying they had to be introduced and encouraged into it
by DNOs. Another respondent thought that due to its complexity only parties with prior
experience of working together or good connections were in a position to apply for the
funding.
One respondent felt there was enough information but that like everyone else they had to
learn by experience.
Finally, a respondent suggested that to make it easier for third parties to become involved
there should be a forum for information sharing and for partners to express their interest
and pitch projects
B.3.1.4 Negative Response
There were two respondents that did not feel the information was communicated well.
One of these found communicating with the DNO slow and challenging, with the DNOs
being cautious and heavily confidential – so this combined with commercial interests
made it difficult to discuss any projects.
B.3.2
Appropriateness of Initial LCNF Criteria (Q3.2)
Questions:
Do you believe the initial LCNF criteria set out by Ofgem was appropriate? Did the
criteria give you a clear understanding of the types of projects Ofgem was
expecting?
B.3.2.1 Summary of Responses
Of those that were aware of the criteria the general consensus with thirteen respondents
in agreement, was that the criteria were appropriate. Only two respondents did not agree
with this.
Four respondents did not reply to this question, and one had no clear view.
PÖYRY MANAGEMENT CONSULTING
October 2016
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