Provision of Economic and Technical Consultancy Support for Electricity Networks Price Review 6 (PR6)

Description

The Commission for Regulation of Utilities (“CRU”) is Ireland’s independent energy and water regulator. Our work impacts Irish homes and businesses ensuring safe, secure and sustainable energy and water supplies for all customers. The CRU’s mission is to protect the public interest in Water, Energy and Energy Safety. The CRU is guided by four strategic priorities that sit alongside the core activities we undertake to deliver on the public interest. These are: • Ensure security of supply • Drive a low carbon future • Empower and protect customers • Enable our people and organisational capacity The Commission for Regulation of Utilities (CRU) is responsible for licensing and regulating the electricity networks companies under the Electricity Regulation Act, as amended, 1999 (“the Act”). The CRU is required under Section 35 of the Act to review and approve charges for the use of the transmission and distribution system, including costs directly or indirectly occurred by the companies in carrying out their statutory duties and the appropriate reasonable rate of return on the capital employed by the companies. The CRU has responsibility for the economic regulation of the electricity sector, including setting the amount of revenue that the Transmission System Operator (TSO), Transmission Asset Owner (TAO) and Distribution System Operator (DSO) can earn through imposing tariffs on their customers. The revenues allowed to the TSO, TAO and DSO must be sufficient to maintain and develop the network, while delivering on the plans to achieve national and European policy for 2030, and protecting the interests of consumers. The national policy recognises the need to facilitate a large-scale deployment of renewables that will be critical to decarbonising the power sector as well as enabling the electrification of other technologies. This project comes at an important time for the development of the electricity networks in Ireland, with the changing operation of the system (more distributed generation), the renewable electricity targets set out in the Renewable Electricity Directive and security of supply issues. While the CRU aims to set a fit for purpose Price Review, we will also seek to ensure that: 1. there is a systematic focus on increasing efficiency in the operation of the network companies while continuing to meet the needs of the network and protecting the long and short-term customer interest; 2. the Price Review 6 facilitates Ireland’s transition to a low carbon energy future as Ireland aims to meet the 2030 renewable energy targets; 3. PR6 considers how best to integrate the Offshore Regulatory Framework determination to accelerate the delivery of at least 5 GW of offshore wind by 2030; and 4. PR6 facilitates the accelerated delivery of grid reinforcement and interconnection, which will reduce the level of constraints on the transmission and distribution systems, a measure which will enhance security of supply, promote decarbonisation and reduce constraint payments to generators. The Commission for Regulation of Utilities (“CRU”) is Ireland’s independent energy and water regulator. Our work impacts Irish homes and businesses ensuring safe, secure and sustainable energy and water supplies for all customers. The CRU’s mission is to protect the public interest in Water, Energy and Energy Safety. The CRU is guided by four strategic priorities that sit alongside the core activities we undertake to deliver on the public interest. These are: • Ensure security of supply • Drive a low carbon future • Empower and protect customers • Enable our people and organisational capacity The Commission for Regulation of Utilities (CRU) is responsible for licensing and regulating the electricity networks companies under the Electricity Regulation Act, as amended, 1999 (“the Act”). The CRU is required under Section 35 of the Act to review and approve charges for the use of the transmission and distribution system, including costs directly or indirectly occurred by the companies in carrying out their statutory duties and the appropriate reasonable rate of return on the capital employed by the companies. The CRU has responsibility for the economic regulation of the electricity sector, including setting the amount of revenue that the Transmission System Operator (TSO), Transmission Asset Owner (TAO) and Distribution System Operator (DSO) can earn through imposing tariffs on their customers. The revenues allowed to the TSO, TAO and DSO must be sufficient to maintain and develop the network, while delivering on the plans to achieve national and European policy for 2030, and protecting the interests of consumers. The national policy recognises the need to facilitate a large-scale deployment of renewables that will be critical to decarbonising the power sector as well as enabling the electrification of other technologies. This project comes at an important time for the development of the electricity networks in Ireland, with the changing operation of the system (more distributed generation), the renewable electricity targets set out in the Renewable Electricity Directive and security of supply issues. While the CRU aims to set a fit for purpose Price Review, we will also seek to ensure that: 1. there is a systematic focus on increasing efficiency in the operation of the network companies while continuing to meet the needs of the network and protecting the long and short-term customer interest; 2. the Price Review 6 facilitates Ireland’s transition to a low carbon energy future as Ireland aims to meet the 2030 renewable energy targets; 3. PR6 considers how best to integrate the Offshore Regulatory Framework determination to accelerate the delivery of at least 5 GW of offshore wind by 2030; and 4. PR6 facilitates the accelerated delivery of grid reinforcement and interconnection, which will reduce the level of constraints on the transmission and distribution systems, a measure which will enhance security of supply, promote decarbonisation and reduce constraint payments to generators.