INNOVATION
Tracking our value
Delivering innovation projects is only part of the story: real value is only unlocked via the implementation of innovation into our network and across the energy system.
We drive the implementation of our projects from each RIIO period into the next and track the value for the following five years. This allows us to understand the impact innovation is having on the network and helps us refine future projects and ways of working.
How do we track value?
As part of our project closure activities, a handover plan is created documenting the next steps, be that any additional project phases or implementation. Implementation involves any activity that allows ownership to be transferred into the wider business: including (but not limited to) policy updates, training, procurement of goods and additional testing. Once the implementation is complete, we monitor its use across the network and assess its value annually.
Value tracking in RIIO-3
As RIIO-3 commences, we are launching a refreshed project prioritisation process that places value at its heart. We’re taking the learning from previous innovation projects and will focus on launching future initiatives which get to the heart of issues faced by the business, ensuring strong support and appetite for implementation. Embedding value in early idea prioritisation activities ensures that value is maximised.
Benefits definition
We want to ensure we have a clearer and more consistent approach to capture and present benefits. To do so, we will be focusing on defining benefits earlier and more explicitly, and these will be discussed in greater detail at the project idea stage, to help drive decision making around which projects are taken forward to the scoping stage.
To align with this, we have refreshed the value tracking categories that our project ideas will be scored against. The new categories are:
This will support with strengthening how we evidence the value of a given project and will support with better decision making and stronger regulatory credibility.
These categories will be reviewed and where required, updated on an ongoing basis to ensure that our projects are delivering real value to the business, wider industry and consumers.
Evolving our governance
We are evolving the Innovation Governance process to introduce a clearer Innovation Board stage earlier in the idea/project lifecycle.
The Innovation Board sessions will happen monthly, ahead of our Gas Transmission Innovation Governance Group (GTIGG) meetings, and will be used to:
- Review ideas and opportunities and mature them thoughtfully as a team
- Confirm which projects should:
- Move forward into further development or scoping
- Be prepared for supplier engagement
- Or be paused, reshaped or redirected
These sessions will ensure the projects taken to GTIGG for sanctioning have a strong and clearly defined business case.
Value tracking throughout previous price control periods
Value tracking in RIIO-2
Value tracking in RIIO-1
RIIO-2 projects were focused on enabling the future of gas, the implementation of which is still in its infancy. We expect to see the value of these innovations build throughout the RIIO-3 period as work continues to progress on Project Union and SCO2tConnect. FutureGrid will continue to be an important contributor, along with the wide range of feasibility studies and proof of concepts that are starting to influence business decisions.
The value of projects from RIIO-1 are being tracked for the final time this year, as we mark five years since the first RIIO period closed. As expected, creative obsolescence is beginning to show in the results this year as “old” innovations are surpassed by new techniques, equipment and processes.
