Preliminary review of Xoserve funding, governance and ownership

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Client Ofgem
Dates 2011
Service(s)Policy & Economics, Regulation & Competition
CEPA was appointed by Ofgem (the GB gas and electricity markets regulator) to undertake a review of the funding, ownership and governance arrangements for Xoserve. The study was designed to support a future consultation on these arrangements by Ofgem on Xoserve’s funding, ownership and governance as part of the RIIO-GD1 price review process.

The project required CEPA to carry out an appraisal of Xoserve’s current funding, governance and ownership arrangements, within the definition of Gas Transporter (GT) Agent services. The results of the appraisal were then used to identify the need to implement options to improve the existing arrangements that would increase the efficiency of service provision by Xoserve and to improve its responsiveness to customer’s needs and future industry changes.

To carry out the review CEPA has led a comprehensive stakeholder consultation process that involved meetings with key industry participants including Xoserve, the GTs, the Big 6 Suppliers (such as EDF and E:ON) and ICOS (small and I&C Shippers and Suppliers). CEPA also developed a Questionnaire that was used to give all stakeholders an opportunity to comment on Xoserve’s existing arrangements and also to suggest potential areas in which reform was needed.

Following this project, CEPA were commissioned to undertake an implementation project relating to the future operation of Xoserve. The case study for that project can be found here.