Electricity Distribution Standard Licence Condition 31E: Flexibility Procurement Statements 2021
Reports, plans and updates
- Publication date
- Industry sector
- Distribution Network
- Licence type
- Electricity Distribution Licence
Standard Licence Condition 31E (C31E) was introduced in December 2020 and implements Article 32 of the Clean Energy for all Europeans Package (Incentives for the use of flexibility in distribution networks) in GB regulation.
C31E sets out the circumstances in which distribution licensees can procure flexibility, what principles they should apply during the procurement process, and the need to take a coordinated approach with other parties to the procurement and use of flexibility services.
Among other requirements, C31E also requires distribution licensees to report on the flexibility they have procured and intend to procure. There are three reporting tools included in the Condition:
1. Flexibility procurement statement – this is an annual statement that licensees needs to submit for approval to the Authority setting out what flexibility they intend to procure in the next regulatory year (April-March), as well as describing how the licensee intends to comply with the licence condition.
2. Flexibility procurement report – this is an annual report detailing the flexibility the licensee has tendered for, contracted and dispatched in the past 12 months, to be submitted to Ofgem within a month after regulatory year end.
3. Ongoing reporting – specifically, publication of the outcomes of flexibility tender processes within one month of contractual agreement.
For the first reporting cycle of C31E in 2021, only procurement statements were required to be submitted to Ofgem. We are currently refining the requirements and process ahead of the 2022 reporting cycle with input from stakeholders.