Expenditure Profile 2011 - 2023 DPCR5
RIIO-ED1
12%
160
Repair and maintenance of the network
25%
140
Key highlights
Performing our other business activities
Well Justified Business Plan
2012/ 13 Constant prices £m
120
100
80
36%
10%
Investing in the network
Business support 60
40
17% Supporting network activities
20
0 2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Repair and maintenance of the network
Investing in the network
Supporting network activities
Business support activities
2023
Performing our business functions
Efficient costs £m (2012-13 prices)
DPCR5 Total
DPCR5 Annual Average
RIIO-ED1 Total
RIIO-ED1 Annual Average
% change
Repair and maintenance of the network
218.2
43.6
320.8
40.1
-8.1%
Investing in the network
621.4
124.2
918.7
114.8
-7.6%
Supporting network activities
360.6
72.1
445.5
55.7
-22.8%
Business support activities
198.8
39.8
268.9
33.6
-15.5%
Performing our business functions
420.5
84.1
649.1
81.1
-3.5%
1,819.1
363.8
2,603.0
325.3
-10.6%
Total
Customer Impact of RIIO-ED1 Proposed Bid 2012/13 Prices £130
Customer prices Prices before revenue profiling
£120
RIIO-ED1 average DPCR5 average
£110
11% price drop
£100
18% price drop £90
£80
£70 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
2015-2023
Customer Customers are at the heart of our business We will expand our services for vulnerable customers, providing an even greater level of support than we do today
will mers e usto All c xperienc e
lass c t s 1
Our promises to the people of the North West
ver hene s u ice w serv y need the
llion in £2.6 bi its invest re We will twork to ensu ailability av ne our bility, d relia e continue and resilienc
Affordability We will bring forward the RIIO-ED1 price reductions early This means our prices in 2014 will be 5% lower than planned In 2015 they will reduce by a further 18%
osts low Keeping c
2015-2023
Our av RIIO erage p -ED 1 wilrices in l be
11%
•
All our customers will experience a first-class service whenever they need us
low er curr than th entl y areey
Ou are cr prices om dow ing n
•
No customers will experience more than 12 interruptions over a three year period
20% r mbe e nu in th on of ti ction redu and dura cuts r e pow
on lights g the Keepin North West in the
•
Sustainability We will make sure our customers can connect low carbon technologies when they need to We will help the UK meet its ambitious carbon reduction targets
ible hing poss a do everyt We will ate the move to to facilit rbon future low ca
We carb will red on fo uce otpri our nt b y
20%
We all depend on electricity – it is the invisible force that powers our daily lives. We rely on it for the basics such as heat and light, essential services such as hospitals, schools, airports and our regional businesses and to power the little luxuries we all enjoy. The future of our electricity network and how we operate it matters to us all. That is why we have talked to you extensively about the complexities of our business and industry and the major challenges we face in the future. Only by involving you in our decision-making can we ensure we have a network that meets the needs of us all. Our plan for the future is a plan for you, a plan for all of us in the North West to ensure our region has a world class network that can meet the challenges of our changing world safely and efficiently. We asked you, our customers and stakeholders, for your opinions and views. You responded in your thousands, providing us with a detailed understanding of what you expect from us. You expressed many different views, but a number of common themes appeared time and time again. And it is these key themes which have shaped our plan for the future.
Our prices are coming down
You said you want our network to be reliable. You expect us to keep the lights on 24 hours a day and seven days a week and this is what we simply must do. We have therefore committed to making our network 20% more reliable than it is today.
Our prices in 2014 will be 5% lower than planned. In 2015, they will reduce by a further 18%
You said you want our network to be affordable. We understand that increasing energy bills are a worry for us all. We have challenged every aspect of our business and as a result we are committing to average prices which will be 11% cheaper than they are today. You said you want our network to be sustainable. We are investing sensibly to make sure our network meets your needs today whilst recognising the challenges of the future. Our plans are flexible and responsive so we can meet the challenges of connecting Low Carbon Technologies.
Our network will be more reliable
Alongside all this, you quite rightly expect excellent customer service when you do need to speak to us. This is exactly what we will provide and are putting our customers at the heart of everything we do.
We will reduce the number and duration of power cuts by 20%
I want to take this opportunity to thank you all for your input. This is a plan for all of us and for the future of our network. The years to 2023 will be an exciting and challenging time for the industry as we adapt to a changing world – but I want to personally assure you that you can depend on us to deliver an even safer, more reliable and efficient service in the years ahead.
We will ensure none of our customers will be classed as ‘Worst Served’ by Ofgem •
I am delighted to share with you the key highlights of our RIIO-ED1 Well Justified Business Plan for 2015 to 2023.
We will expand our services for vulnerable customers, providing an even greater level of support than we do today
Our average prices between 2015 and 2023 will be 11% lower than they currently are
Reliability There will be no customers in the ‘Worst Served’ category by 2023 in the North West
Customers are at the heart of our business
Welcome
Steve Johnson
Our network will meet future challenges We will make sure customers can connect low carbon technologies when they need to
We will help the UK meet its ambitious carbon reduction targets
CEO Electricity North West See our business plan in full at www.enwl.co.uk/businessplan