National Grid is an international electricity and gas company based in the UK and northeastern USA. It plays a vital role in connecting millions of people safely, reliably and efficiently to the energy they use. In the UK, National Grid operates under the RIIO regulatory regime set out by the Office of Gas and Electricity Markets (OFGEM).
During the RIIO T1 regulatory period, National Grid Electricity Transmission (NGET) had to deliver a series of network replacement outputs for lead asset categories in accordance with the terms of its licence. More specifically, this meant improving the visibility of its cost performance and project reporting, something that would need to be achieved through the right control framework and more robust management reporting capability.
Enzen worked closely with National Grid to produce a gap analysis for the reporting of Regulated Asset Value (RAV). The team developed a baseline management approach, then implemented fit-for-purpose performance reports to provide better visibility of cost forecasts against sanctioned budgets.
Thanks to this collaboration, Enzen helped improved the accuracy of NGET’s forecasts, safeguarded revenues for £30m worth of capex projects and achieved more effective cost and schedule performance tracking for 80% of its circuit breaker interventions. Outage milestones were also identified at 82 locations, helping NGET to improve planning and manage cost even further.
Enzen also highlighted major variations between budget and actual costs and increased NGET’s control of critical performance management data. This saved time, enhanced the quality of data and reduced the potential risk of financial liabilities under the RIIO regime.