Historically, the distribution network operators’ (DNOs) role and interaction with customers was mostly led by the need to manage outages. As we transition to a distribution system operator (DSO) and customers choose to interact with the network for other services, it is important to reconfigure our services to address the needs of all our customers.
It is fundamental for network services to be inclusive and fair, to make sure that no one is left behind as we transition to a net zero future. The increased uptake of low carbon technologies (LCTs) integrated into our network may result in early need of network reinforcement if flexibility can’t be procured from customer side due to exclusion. There is a need to increase our understanding of future vulnerability and disadvantage in a world that is transitioning to net zero. Currently no comprehensive customer segment mapping in this context is available and this gap is a limitation to networks’ ability to support vulnerable customers (VCs) in an effective way.
Objectives
The main output from the project will be a comprehensive understanding of future customer vulnerabilities and localised service needs. The implementation of a new range of services and solutions will result in an improved service that will be more inclusive, fairer and better suited to the needs of our future VCs and disadvantaged customers. This will support better access to the benefits associated with the net zero transition.
Learnings
Outcomes
The key outcomes of the project are summarised below:
Phase 1:
Played a pivotal role in shaping the CV Strategy and identifying the 1.58 million individuals, in UK Power Networks’ area, at risk of being left behind in the energy transition.
Provided a standardised definition and structured approach (3-pillar structure) for addressing services to hard-to-reach and LNB customers.
Phase 2:
Mapped customer segments and identified specific barriers for each segment, facilitating better access to both existing and emerging products and services.
Developed the Socially Green Mapping Tool, primarily targeted for adoption by various departments within the company and incorporated it into governance documents.
Phase 3:
Determined the extent to which that Sustain Flexibility could unlock from local authorities based on government’s current funding arrangements.
Completed the modelling of different scenarios where local authorities participate in energy efficiency flexibility services and the cumulative benefits of multiple local authorities delivering large installations concurrently across flexibility zones. This stacked view could help to determine a revised view of the potential peak load reduction that could unlock from multiple local authorities if several of them delivered in-line with flexibility needs.
Enhanced local authorities' home energy advisors’ expertise linked to demand side flexibility. The home energy advisors' training from the Centre Sustainable Energy was one of the strong drivers for Camden to use their dwellings for the trial.
Unlocked opportunities for partnerships between community energy groups, flexibility providers, and SHPs fostered collaboration in addressing consumer vulnerability and promoting domestic flexibility solutions. This collaboration enhanced the effectiveness and reach of initiatives aimed at improving energy access and affordability for all.
Lessons Learnt
The key lessons learnt from the project can be summarised below:
Sharing knowledge with flexibility providers on Energy Efficiency Flexibility: During initial engagement with flexibility providers, significant challenges were faced as they did not consider demand reduction from energy efficiency as a flexibility option, viewing flexibility solely as a shifting in demand. Additionally, short timescales and incentives for Flexibility Service Providers posed additional challenges, highlighting the need for careful consideration of incentives to ensure meaningful participation and successful outcomes.
Enhancing Social Housing Providers (SHP) Engagement through Mapping Tools: Most SHPs lacked visibility towards hard-to-reach areas and flex zones, hindering their participation in Leaving no one behind (LNB) initiatives. Providing SHPs with outputs from the Socially Green mapping tool, aligning flex need codes and coverage of LNB initiatives, could enhance campaign targeting and effectiveness, improving outreach efforts to LNB customers.
Customer Recruitment Challenges: Time constraints and the vulnerability of social housing residents posed recruitment challenges for the Autumn Trial. Future trials must prioritise finding suitable customers to meet service and LNB requirements, possibly utilising tools like Intersectionality for customer identification.
Encouraging Effective Energy-Efficiency Use: Active resident engagement is vital for effective energy efficiency, even when residents have limited control over installations. Targeted advice, such as FAQ documents and in-home support, can improve understanding and usage of energy-efficient technologies like storage heaters in social housing.
Educating Consumers About Flexibility: Engaging hard-to-reach consumers in flexibility services requires tailored education and messaging. Roadshows can introduce flexibility concepts, but ongoing assessment is needed to gauge knowledge levels over time. Messaging should address residents' concerns, like convenience and cost savings, to foster engagement. Addressing knowledge gaps among organisers and stakeholders is crucial for promoting flexibility solutions effectively.
Challenges in Promoting Flexibility: Residents may prioritise immediate concerns over engaging in flexibility, highlighting the need for targeted messaging and sustained education efforts. Technical challenges and skepticism around Smart Meters pose ongoing engagement obstacles, requiring continued education and resolution of technical issues.
Importance of Trusted Intermediaries: Trusted intermediaries, like liaison officers, play a vital role in reducing hesitancy and increasing participation in trials and interventions. Training local champions can ensure sustained engagement beyond trial periods.
