Business Plan - Section 3 Services

• Operational Plan
• Management and Organisation
• People and Expertise
• Financial Plan

Services:

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
• Release and cutover co-ordination
• Process Improvement
• New Entrant Service
• Secretariat for retail market forums
• Market assurance co-ordination
• Issue resolution
• Messaging Service

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

• Support the All-Island Project within the scope of the retail market
• Interaction of retail market group with other relevant groups

3.1 Operational Plan

Themes:

The concern for RMDS in 2009 is to continue to facilitate the major changes planned - including those to further enhance the retail market processes as an efficient, cost-effective means of conducting business.

RMDS will be increasing the quality and responsiveness of the service provided to MPs through all media.

Key Objectives:

Release and cutover:

• Successful cutover of the retail market and all MP systems and businesses to version 7.0 of the retail market design, to facilitate the next market release.
• Completion of all 'establishment' work around the retail market structures.

Process improvement:

• Retention of EN:ISO 9001 certification and preparation for the transition to ISO 9001:2008.
• Regular reporting on retail market process quality indicators
• Formulation of long term process improvements to save costs.

Design Information Service:

• Upgrade of RMDS customer website.
• Support participants as they enter the domestic market.
• Research on harmonisation across the two jurisdictions on the island.

Operational updates:

• Run market teleconference calls as required by the Market Participants.

New Entrant Service:

• Formalise and enhance the service.
• Augment the e-enabled aspects via the website.

Retail Market Forums:

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

Market Assurance:

• Co-ordinate assurance for requalifications and new entrants as required. Ensure all documents are approved and published.

Issue resolution:

• Facilitate in a timely manner the IGG's capability to progress the key issues within the retail market.

Messaging Service:

• Commission a study on the future viability of the MPCC architecture and its impact on the Market participants.

3.2 Management and Organisation

Organisation: The service is provided by personnel drawn from IT Consulting, from ESB's CIO organisation and externally. The team lead reports to the Manager RMDS, a manager within the Market Data Services division of ESB Networks.

Ringfencing:

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
• The RMDS team occupies separate offices within the Merrion Square building.
• 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 and are continuing to improve 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. The current contract is with Gemserv.

3.3 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.

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 other market designs, especially the NI retail design
• Knowledge of the electricity industry structure in Ireland
• Knowledge of the electricity distribution businesses
• Change management
• Web skills
• Knowledge of the ARIS case tool
• Knowledge of the messaging infrastructure
• Knowledge of the central market system

Among the skills required are:

• Interpersonal skills
• Problem solving
• Meeting facilitation

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
• Induction training

3.4 Financial Plan

RMDS costs are recouped via Distribution Use of System (DUoS) Charges and form part of the Distribution price review. From 2009 onwards, RMDS costs will be reviewed annually.

The 2008 outcome and financial plan for 2009 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.

Table 1. 2009 Financial Plan (with 2008 outcome)

Item	Outcome 2008	Proposed 2009	Comment
Labour cost	710,393	815,240
Accommodation	38,160	47,500
IT &Telecoms	31,376	38,000
Server and storage	323,160	335,000	IPT environment &storage, ARIS, website., servers.
Others	2,733	5,000
Professional Fees	29,764	100,000	Gemserve Assurance contract
Total	1,135,586	1,340,740

Main costs will be payroll, storage for IPT environment and Assurance Services

The reduction in the operating costs of the section since 2007 is result of a number of issues. Primariily there has not been market design changes implemented during this period and consequently the resourcing and costs associated with this has not transpired. It is expected that this work will normalise in 2009 and hence the budgetted rise for 2009. Likewise the budgetted core resourcing for the section hasn't reached its expected number hence the labour costs for the business has been below that budgetted for. Appropriate resourcing for RMDS is one of the key targets for 2009.

As a result of the difference between the actual and budgetted figures for 2007 and 2008 there is a disparity in what should have been included in the DUOS tariff mechanism. To correct the difference ESB Networks Asses Management will submit as part of their overall submission the As a result of the difference between the actual and budgetted figures for 2007 and 2008 there is a disparity in what should have been included in the DUOS tariff mechanism. To correct the difference ESB Networks Asses Management will submit as part of their overall submission the necessary regunds. The balancing statement below outlines the figures involved.

RMDS DUOS/Actual Balancing statement for 07 and 08.

Item	2007 Actual	2008 Actual	2009 Plan
Labour cost	875	710	815
Accommodation	42	38	48
IT &Telecoms	43	31	38
Server and storage	276	323	335
Others	4	3	5
Professional Fees	128	30	100
Total	1,368	1,135	1,341
DUOS Provision	-1,630	-1,640	0
Balance (Credit is Refund)	-262	-505