IGov | New Thinking: Distribution Service Providers

Home » New Thinking, News » New Thinking: Distribution Service Providers

on Apr 15, 16 • posted by rhoggett •

New Thinking: Distribution Service Providers

Distribution Service Providers – an Update

15th April 2016 (slide pack updated December 2017)

In January we produced a blog introducing the idea of Distribution Services Providers. Since then we have been discussing and thinking about the idea in more detail and the slides below help explain what a DSP does. We also ran a DSP Roundtable event in May 2016.

The slides show:

the NY Reforming the Energy Vision to explain that DSPs are a new value proposition and become the ‘heart’ of the electricity system .
how a DSP is the opposite of a traditional network company in relation to system optimisation and energy services.
what the role of a traditional network utility, and the key incentives of its rate of return or capital based regulation
the role of a DSP, and how it is primarily regulated through performance based regulation, linked to desired outcomes.
that as a market facilitator, DSPs can undertake coordinated management control to better increase system efficiency. The DSPs are the market facilitators or managers of platforms – they are not the do-ers. The DSPs are incentivised to increase 3rd party entrants.
the fundamental pitch of the NY REV that utilities may make more on the PBR revenue but that this should lead to reduce system costs overall and bring down , or at least hold stead, customer bills.
the challenges and opportunities faced by energy system stakeholders – whether it be Government, regulators, small or large companies and so on.
to what extent current regulation in NY state meets those challenges or captures those opportunities.
how the NY REV restructuring is meant to meet those challenges or captures those opportunities.
where DSPs fit into the IGov framework