Decision published on SONI’s Forward Plan 2023/2024 Financial Incentive
| Published date | 25 January 2024 |
| Year | 2024 |
| Energy Sector | Electricity Networks |
SONI Evaluative Performance Framework
Evaluation Report to UR of the EPF Expert Panel
Assessment of SONI Forward Work Plan
1 October 2023 to 30 September 2024
Preamble
Throughout this report, the following abbreviations are used:
UR is the Utility Regulator in Northern Ireland
EPF stands for Evaluative Performance Framework
SONI is the electricity transmission System Operator for Northern Ireland
TSO stands for Transmission System Operator
DSO stands for Distribution System Operator
NIEN stands for Northern Ireland Electricity Networks
SEMC stands for Singl e Electricity Market Committee
Introduction
As part of the 2020 to 2025 SONI price control, UR introduced the EPF, the primary
purpose of which is to provide financial and reputational incentives to SONI to
encourage it to engage in actions and behaviours which contribute to four high level
outcomes.
One element of the EPF is the Expert Panel, established to bring independent
expertise to the assessment of SONI’s planned and actual performance.
The Panel’s function is to undertake an evaluation of, and report on, SONI’s Forward
Work Plan (the Plan) and, subsequently, SONI’s performance against this Plan.
The Panel’s instructions are to assess the material in the Plan, and to take into account
submissions provided by SONI’s stakeholders in making its report to UR.
UR has provided detailed guidance* to support and guide the Panel in its work.
UR is the decision-making authority.
This cycle of the EPF process relates to the regulatory period 1 October 2023 to 30
September 2024.
*hps://www.uregni.gov.uk/publicaons/evaluave-performance-framework-guidance-document
Panel Assessment Process
Review of Forward Work Plan
The Panel followed the detailed guidance issued by UR in reviewing and evaluating
the Forward Work Plan.
This involved applying the following criteria:
- Service Ambition
- UR Service Priority Alignment
- Stakeholder Engagement
- Service Accountability
to the assessment of the actions and behaviours that the Plan presents as contributing
to four high-level Outcomes:
- Decarbonisation
- Grid security
- System-wide costs
- SONI service quality
in each of the four SONI roles:
- System Operation and Adequacy
- Independent Expert
- System Planning
- Commercial Interface.
Review of Submissions from the UR and other stakeholders on the Plan
Written submissions on the Plan were solicited by UR during a consultation period
which concluded on 14 November 2023, and these were considered by the Panel.
Participation in meetings with stakeholders on the Plan
The Panel participated in a Stakeholder Meeting, attended by
stakeholders/stakeholder representative groups, held (in person and virtually) on 23
November 2023.
During the first (open) part of this meeting, SONI made a presentation and
stakeholders were then invited to make comments and ask questions of SONI. In the
second (closed) part, attended by SONI, UR and the Panel, the Panel asked questions
based on the Plan and information arising from the earlier session, and SONI provided
responses.
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