Asset management system

Supported by EA Technology, the DNOs developed the Common Network Asset Indices Methodology (CNAIM) and submitted it for approval in 2015. 

This provides Ofgem with an extremely valuable dataset: delivery of regulatory objectives can be closely monitored and performance can be benchmarked. Through the strong financial incentives of RIIO regulation, outperformance can be rewarded, shaping DNO behaviour and delivering better value to customers.

The challenge for DNOs is how to use these incentives and freedoms to maximise income, as simply accepting the output of the CNAIM models as a prescriptive plan will not generate the best results. For a DNO with responsibility for managing hundreds of thousands of assets and supplying millions of customers, this represents a formidable challenge.

One solution is to use a risk-based asset investment decision support tool, such as EA Technology’s Condition-Based Risk Management (CBRM). This systematically analyses asset health, criticality and risk and uses this to prioritise and optimise investment plans. Such risk-based asset investment management is said to ensure outperformance for DNOs while reducing costs to customers.