Ofgem  introduced the Innovation Funding Incentive (IFI) and Registered Power Zone (RPZ) incentive mechanisms in 2005. The primary aim of these two new incentives is to encourage and provide funding for Distribution Network Operators (DNOs) to apply innovation in the way they pursue the technical development of their networks in order to deliver value (i.e. financial, supply quality, environmental, safety) to end consumers. 

Well formulated Innovation programme will produce a stream of reliable technological advances providing advantages for both the business and its customers.  It is important that there is a balanced portfolio of projects producing short, medium and long-term benefits.

 Such benefits include (but are not limited to):

• sustainable operational cost savings; 
• quality improvements in network performance such as reductions in customer minutes lost (availability), customer interruptions (security), distribution losses etc; and the
• targeting of capital expenditure to where it provides optimum benefit

 Cre8 can assist DNO's in the production of detailed plans for a range of IFI compliant projects including: 

• programme management from problem through concept to solution
• costs and resource requirements
• an assessment of the scale, nature and timing of the value and other benefits
• the integration of these project plans into an overall programme which is suitable for IFI
• exploration of potential opportunities for collaboration and external funding
• consultation with operational management 
• deployment, review and reporting

Cre8 have recently completed a review of the projects reported  under OFGEM's Innovation Funding Incentive (IFI) for 2005/6 this shows that whilst there are a large number of are projects are now  under way, there still  major opportunities that have yet to be explored.

Interested parties are invited to contact us immediately for further details of the analysis and opportunities. 

Cre8's response to OFGEM's open letter on IFI and RPZs
can be downloaded as a pdf document

          Cre8 Innovation Solutions Ltd   0208 325 6560