ENWL021 - VoLL 2

ENWL021 - Value of Lost Load 2

Our first Value of Lost Load (VoLL) project (ENWL010) demonstrated that VoLL is now notably higher than observed in the previous major British study in this area. This increase is thought to reflect a greater dependency on electricity and changing customer needs and expectations. The study also concluded that a uniform VoLL significantly undervalues the needs of certain customer segments, while others are over represented, driving potentially inappropriate investments. An output of the VoLL research is a new segmentation model, which will theoretically enable DNOs to make smarter investment decisions that are more reflective of divergent customer needs.

To move towards the practical implementation of a differentiated VoLL, it is recognised that further detailed analysis is required. VoLL 2 will comprise two distinct pieces of research: a strategic piece of statistical analysis and industry consultation to explore the practicalities and regulatory implications for implementation of an alternative, segmented VoLL model; and empirical customer research to provide insight into the multiplier effect and socialisation of cost arising from a revised model.

Timescales: November 2018 - May 2020.

Project documents