AER - Final report - Incentivising and measuring export service performance - March 2023

On 10 March 2023, we released the final report on incentivising and measuring export service performance. This report outlines our plans to:

• introduce reputational incentives via annual export service performance reporting. In order to prepare these annual reports, we will collect new data from DNSPs related to export service performance.
• introduce a new small-scale incentive scheme for export services (the export service incentive scheme, or ESIS), allowing DNSPs to consult with customers and propose bespoke export service incentive arrangements. The Draft ESIS is now published for consultation. We do not propose to amend the service target performance incentive scheme (STPIS) at this time.
• undertake a future review of incentive arrangements and our approach to incorporating export services into annual benchmarking reports. We will commence this review by 2027 but may do so earlier if there are improvements in data availability and quality. This review will also consider whether amendments to the distribution reliability measures guidelines, demand management incentive scheme and demand management innovation allowance mechanism are necessary. We do not consider it necessary to amend these guidelines at this time, but may do so in the future.