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RMDS Business Plan 2011

Retail Market Design Service

ESB Networks

House 39

Merrion Square

Dublin 2.

Version : 1.0

Status : Final version

Date : 28th January 2011

Document Reference : BP11

Approved By : Bob Turley

Approval Date : 1st February 2011


Document Information

Approvals

This document requires the following approvals:

Name Title Date of Issue Version

Bob Turley Manager, MDS, ESBN 28th January 2011 0.2

Distribution

This document has been distributed to the following:

Name Title Date of Issue Version

History of Changes

Version Number

Status Date of Issue Reason for Change Change Control Reference

0.1 Draft 28.01.11 First draft BP11

0.2 Draft 01.02.11 MB feedback

0.3 Final Draft 01.02.11 BT approval

1.0 Final 29.04.11 Publish on RMDS

website

Version : 0.2

Status : Draft /tt/file_convert/5adcca7c7f8b9ae1408c067e/document.doc

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Table of Contents

1 EXECUTIVE SUMMARY 42 GENERAL DESCRIPTION OF THE SERVICE 6

3.1 OPERATIONAL PLAN................................................................................................8

3.2 MANAGEMENT AND ORGANISATION........................................................................10

3.3 FINANCIAL PLAN...................................................................................................12

3.4 2011 WORK PLAN OVERVIEW................................................................................13

Appendix A. Quality Policy and Service Objectives 14

Table of TablesTable 1 - 2011 Financial Plan (with 2010 outcome)......................................................................12Table 2 - RMDS Service Objectives..............................................................................................15

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1 Executive SummaryThe Retail Market Design Service (RMDS) is the "ring-fenced" function within ESB Networks

responsible for all aspects of the Retail Electricity Market design on behalf of the Commission for

Energy Regulation.

The budgeted cost of RMDS operations in 2010 was €1.65M; the actual cost was €1.53M.

For 2011 the budgeted cost is €1.73M. The difference from the 2010 budget arises from a slight

increase in labour costs due to the Harmonisation Project workload and also some application and

test system upgrades which are necessary to ensure the continued quality of our service to the

market. In addition to the normal operational expenditure outlined above there will be a

requirement for a detailed scoping and design phase for the retail market harmonisation changes in

2011. The estimated cost of this work is expected to be of the order of €400k and will be recouped

via the normal DuOS mechanism.

In addition to the planned work programme RMDS will endeavour to support and facilitate any

market driven requirements as they arise during the year based on the assumption that the

budgetary considerations can be recovered as per the normal DuOS mechanism

Highlights of 2010

Successful delivery of two market releases in June and November.

Successful delivery of a Technical upgrade of the MPCC/Hub platform.

Delivery of a new HRDS function to manage and support the Harmonisation change control

process.

Market approval of V1.0 of the Retail Market Harmonised baseline.

Accession of 3 new entrants to the Retail Market:

Ecopower.

NRG Vend.

Castle Dockrell.

Two re-qualifications for existing suppliers into new market segments:

Bord Gais in the unmetered segment.

Electron Energy in QH segment.

Successful upgrade of Sharepoint

Retention of ISO 9001:2008 standard

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Key deliverables for 2011

Documentation delivery for V2.0 of the Retail Market Harmonised baseline.

Delivery of the Global Aggregation functionality in the Market design upgrade in June.

Upgrade the ARIS business process modelling application.

Performance enhancements of the Retail market test systems and data.

Continued improvement in the quality of our service to the retail market.

Continued high quality service to the Electricity Retail market

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2 General description of the service

Mission Statement: ‘Our mission is to provide cost effective, quality delivery of the Market design

approved by CER to all Market Participants’

Work culture:

We promote a culture of continuous improvement and are fully committed to supporting growth and

development in the Market. Our business strategy revolves around the need to provide quality

products and services to our customers. This has been undertaken through the establishment of a

professional team to cater for all our customer and stakeholder needs.

History: Retail Market Design Service (RMDS) is the "ring-fenced" function within ESB Networks

responsible for all aspects of the Retail Electricity Market design on behalf of the Commission for

Energy Regulation. It was established on an interim basis in February 2005 and formally ratified in

June 2005.

Strengths and core competencies:

Facilitation skills.

Clear communication of technical information.

Appreciation of business impact of process quality.

Analysis and documentation skills.

Stakeholder management.

Planning and Co-ordination.

Professional, customer focussed and responsive service

Flexible approach

Confidential, reliable, trustworthy expertise and impartiality

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3 ServicesServices: RMDS provide a range of services all touching on the Retail Market design. The key

services are:

Retail Market Design Information Service

Operational Updates

Change Control

MDU Release and Cutover Co-ordination

Process Improvement

New Entrant Service

Secretariat for Retail Market forums

Market Assurance Co-ordination

Issue Resolution

Obligations: In addition, RMDS is charged with a number of other tasks:

Supporting the retail market Harmonisation project between ESB and NI

Interaction of Retail Market group with other relevant groups

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3.1 Operational Plan

Themes: The concern for RMDS in 2011 is to continue to facilitate the changes planned – including

those to further enhance the Retail Market processes as an efficient, cost-effective means of

conducting business.

RMDS endeavours to continually increase the quality and responsiveness of the service provided to

Market participants through all media.

Key Objectives:

Release and Cutover:

Successful Cutover of the Retail Market and all MP systems and businesses to version 9.0

of the Retail Market design.

Design Information Service:

Upgrade of RMDS customer website with particular focus on the New Entrant process.

Facilitation of Retail Market Harmonisation across market participants in ROI and NI

Support of existing Participants as they move to new Market segments.

Upgrade the ARIS business process modelling tool.

Operational updates:

Run Market teleconference calls as required by the Market Participants.

New Entrant Service:

Formalise and enhance the service to make it easier for new entrants to understand the

processes required to become active in the retail market.

Augment the e-enabled aspects via the website www.rmdservice.com

Retail Market Forums:

Successfully facilitate IGG and HWG meetings as required and manage associated actions.

Market Assurance:

Co-ordinate assurance for requalification and new entrants as required.

In conjunction with Gemserv refresh the suite of assurance documents to approval stage

and published to the market.

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http://www.rmdservice.com/


Process improvement:

Retention of ISO 9001:2008. We have two audits each year to ensure our compliance one

internal and an external audit carried out by NSAI.

Refresh of our quality manual and management system to reflect our activities.

Regular reporting on Retail Market process quality indicators.

Issue resolution:

Facilitate in a timely manner the IGG’s capability to progress the key issues within the

Retail Market.

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3.2 Management and Organisation

Organisation: The service is provided by personnel drawn from ESB’s CIO organisation, ESB

Networks and externally. The team lead reports to the Manager RMDS, a manager within the

Metering and Data Services division of ESB Networks.

Ring-fencing: Impartiality and transparency are vital in the role of Design Administrator. The

Commission decision required personnel, reporting and financial separation of RMDS from other

parts of ESB and ESB Networks. These measures and others have been implemented:

RMDS is a distinct, readily identifiable team.

Each team member receives Market and service training.

Team members sign Confidentiality Agreements.

The RMDS team occupies separate offices within the Merrion Sq. building complex.

RMDS maintains separate financial records.

RMDS records its activities separately.

RMDS operates to a separate Quality Manual and Quality Procedures.

The annual budget and business plan for RMDS will be presented to the Industry

Governance Group and approved by CER.

The RMDS manager and team leader meet every six weeks with CER.

The RMDS website is separate from that of ESB.

The RMDS team aspire to the highest levels of transparency throughout all our activities and those

in the Market in general. RMDS prides itself on its responsiveness and proactive assistance to

Market Participants to ensure that all processes work as smoothly as possible and with minimum

cost of participation.

Professional Support: RMDS, at the request of the Commission, maintains a contract for

professional services for the role of Assurance Body. Following a competitive tender process in

September 2010 Gemserv were awarded the contract the term of which is 2 years.

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People and Expertise

A key element of the services provided to Market Participants is the knowledge and expertise of its

team members. Market Participants depend on this resource when they have a query on the

operation of the Market design and to ensure that the optimal design is obtained in response to

requests for change. RMDS can also utilise the considerable technical and business experience

within the ESB group where specialist needs are demanded.

A major objective for RMDS is to maintain and develop the expertise of the team and to ensure that

new joiners are quickly brought up to the necessary level.

The areas of expertise required to meet this standard include:

Knowledge of the Retail Electricity Market Design.

Knowledge of the central market systems.

Knowledge of other Market designs, especially the NI Retail design.

Knowledge of the electricity industry structure in Ireland.

Knowledge of the electricity Distribution businesses.

Knowledge of change management methodologies.

Expertise in project management.

Knowledge of the ARIS process modelling tool.

Knowledge of the messaging infrastructure.

Among the skills required are:

Good interpersonal skills.

Ability to Problem solves.

Meeting facilitation.

Excellent communication skills.

The following measures are in place in order to achieve this objective:

Skills/competencies for the Design Administrator roles.

Individual training needs assessment.

Individual training and development plans.

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3.3 Financial Plan

RMDS costs are recouped via Distribution Use of System (DUoS) Charges and form part of the

Distribution price review. Since 2007, RMDS costs are reviewed annually.

The 2010 outcome and financial plan for 2011 are shown below (Table 1). It is proposed that the

recovery of costs associated with the Retail Market Design Service will be on the basis of actual

costs incurred. The Manager RMDS will furnish regularly reports for CER on progress against plan.

Budget2010

Actual 2010

Budget 2011

Labour 809,966 726,297 851,870

Accommodation 48,735 50,019 48,735

IT/Telecoms 38,988 27,063 38,988

Server and Storage 332,000 136,224 136,000

Professional Fees 120,000 156,916 120,000

Others 0 1,970 0

Market Releases 300,000 436,093 400,000

€1,649,689 €1,534,581 €1,595,593

ARIS Upgrade 50,000

NRI Upgrade 90,000

Sub Total €1,735,593

Harmonisation Design phase * 400,000

Grand Total €2,135,593.00

Table 1 - 2011 Financial Plans (with 2010 outcome)

* Notes to Retail Market Cost above

Harmonisation: Considerable work has been carried by a multi functional ESB team in conjunction with NIE to deliver the design for the harmonised retail market baseline. There will be costs incurred for the detailed design impaction work in 2011. It is expected that these costs will be of the order of €400k. The implementation will drive further costs in 2012. Exact costs will be furnished once the detailed design phase has been completed.Version : 0.2


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3.4 2011 Work Plan overview

Market Releases

2010 Actual

There were two successful releases in 2010. The June release was a significant piece of work in

that it also delivered a technical upgrade to the hub and MPCC infrastructure. The cost of this

project was €316k. The November release was not as substantial but delivered the new DG4 tariff

group and a number of non schema related changes for the market. The cost of this release was of

the order of €120k.

2011 Budget

As part of the ongoing system developments plan we aim to carry out a retail market upgrade in Q2

of 2011. This is in line with the agreed Retail Market System Development Plan and has been

communicated to the market participants and the CER. The content of the release will be as follows

MCR1024: Global aggregation.

MCR0179: Downloadable meter point details file.

MCR0178: Treatment of supplier unit excess of generation over demand.

MCR0180: Sending of 342 MM to Eirgrid.

MCR1040: Additional information on the 591MM.

The estimated cost of this work is €400k, although final figures will only be available once the

project has been delivered.

In addition to the above there are specific system upgrades needed in 2011 namely to the ARIS

business modelling tool and to the test market system (NRI). The costs of this work will be approx

€140k.These upgrades are necessary to ensure the continuity of service can be maintained and we

can deliver the required service to meet the expectations of the market.

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Appendix A. Quality Policy and Service Objectives

Quality Policy:

1. Our Customers

CER.

NIAEUR.

Electricity Suppliers.

Eirgrid/TSO.

Generators.

ESB Networks.

New Entrants.

NIE.

DCENR.

2. We consult extensively with our customers to develop a Business Plan that meets their needs.

3. We deliver a timely, accurate and friendly service.

4. We actively seek customer feedback to review and continually improve our service.

Our Processes

1. We comply fully with all regulatory and legal requirements.

2. We benchmark our performance against international best practice.

3. We set measurable targets for the quality of our service and the effectiveness of our processes.

4. We actively pursue a policy of continual improvement through ongoing management review.

Our People

1. We ensure that our people are competent and empowered to carry out their roles through recruitment, training, performance management and professional development.

2. We combine our ideas and skills to improve the quality of our service.

Our Mandate

1. We operate within the budget presented to the Industry Governance Group and approved by the Commission.

2. We work to the annual Business Plan presented to the Industry Governance Group and approved by the Commission.

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3. We regularly report to the Commission on progress.

We utilise the RMDS Quality Management System to support our processes as a framework for

continual improvement. This is a documented Management System designed to meet the

requirements of ISO9001 standard.

RMDS is committed to delivering the highest quality of service. We have attained certification to

the IS EN ISO 9001 standard and will continue to improve on this over the coming year.

Service Objectives:

As part of the development of the Quality Management System, the following core objectives have

been identified. We will measure and track these and report on progress:

Area Activity Measure Objective

Customer Surveys No. per year 1

Process IGG Meetings M1 IGG Change Control Documents (days before meeting) 5

M2 IGG Agendas (days before meeting) 5

M3 IGG Working Documents (days before meeting) 2

M4 Draft Presentations (days before meeting) 2

M5 Open/Carried Forward Action Items list (days before

meeting)1

M6 Circulation of Final IGG Presentations (days after

meeting 2

M7 New Action Items List (days after meeting) 2

M8 Circulation of IGG Minutes (days after meeting) 10

Conference Call C1 Agenda (days before meeting) 5

C2 Circulation of Conference Call Minutes (days after

meeting)5

Financial Financial Plan Expenditure within overall budget 100%

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Table 2 - RMDS Service Objectives

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