Membership Proposition 2021-2022
July 2021
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Exec Summary
An overview of the Open Energy Membership Proposition 2021-22
Proposition | Structure | Benefits | Fees |
Open Energy is a service that makes it easy to search, access and securely share energy data. Backed by Ofgem and the UK Government, it brings together data held by thousands of individual organisations and institutions to enable an open marketplace and net-zero future. Through collaboration and open standards, Open Energy members unlock sector-wide efficiency and innovation that can enable their own data strategies:
| Membership will be tiered, with initial fees based on turnover:
Open Energy will offer tailored support (Communications, Sandbox and Service Desk) to meet the needs of typical Open Energy members in each tier. | Through Open Energy membership, organisations will accelerate digitalisation and decarbonisation within their business and also at sector level. Membership of the service will:
| Interim fees have been proposed taking into account feedback from industry consultation and the Open Energy Advisory and Steering Groups. The interim fee model will be applied from August 2021 and will run until March 2023. Further consultation on the final fee model will take place in 2022. |
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Code(s) of Practice
based upon Group defined precedents
Service Components
for data seekers and data providers
Open Energy
Access
Control
IN DEV
Energy�Search
Forum
Advisory & Steering Groups
Standards development �(policy, legal, tech, data, operations)
User and market needs, roadmap development and prioritisation
Development and �implementation �of services
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Net-Zero Future
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The
Open Energy Proposition
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What is Open Energy Membership?
Open Energy Members will help the UK to meet important societal, industrial & government milestones
By operationalising the strategic objectives of the Energy Digitalisation taskforce, Open Energy members will help to drive clean growth towards net-zero emissions by 2050
Through collaboration and open standards, Members will radically simplify, improve the efficiency, manage risk and reduce the costs of:
This will drive economic growth by unlocking innovation for the whole sector, addressing both industrial and consumer data.
Discovery, access and use of energy data
Unlocking commercial innovation through an open marketplace for both Open and Shared Data
Data governance, licensing, legal, liability and compliance issues at sector-scale
2
3
1
For society
As members of this neutral convener, Open Energy Members will aid the application of policies and regulation.
Collectively, Members will support building towards a financially independent service that will not require government funding in the long-term and will support the needs of both industry and government policy
For industry
For government
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What is Open Energy?
There are two ways to use Open Energy to find and share energy data:
Open Energy is a service that makes it easy to search, access and securely share energy data. Backed by Ofgem and the UK Government, it provides access to data held by thousands of individual organisations and institutions.
Access Control
Makes it efficient and secure to access and share data that can’t be published openly for legal, privacy, commercial or security reasons, like information on how electric vehicle charging stations are used in a certain local authority area. It covers legal contracts and security authentication so data is only accessed by the right organisations under pre-agreed policy and rules, using automation to simplify and scale the process. It’s built to financial-grade security standards.
Energy Search
Makes it simple to find energy data that’s already openly shared, like the amount of solar energy that’ll be generated according to the weather forecast
➕
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How Open Energy benefits the market
Open Energy can help organisations reduce the costs of finding, accessing and sharing data, aid compliance with regulation,
and stimulate innovation to develop products and services, so they can thrive in a net-zero economy.
Data
Consumers
Data
Providers
Service
Providers
Open Energy helps Data Providers increase their addressable market by sharing access to data in a simple, secure manner. The approach saves time and money in contract negotiations, technical integration and legal compliance. �
It can cut the cost of servicing a data request by at least 50%, using automation to comply with commercial and regulatory data-sharing policies, to unlock scale in data requests as they grow.
Early adoption will provide better value for money by helping to address interoperability as part of an organisations core digital strategy.
Open Energy helps Data Consumers find and access energy data from across the market with lower costs and less hassle.
It will unlock more efficient data sharing with both existing and developing use cases (e.g. flex) and stimulate product and service innovation for a net zero economy.
Open Energy helps Service Providers to quickly and efficiently access diverse market data to serve their customers. This will help them improve existing products, accelerate new offerings and reduce operating costs.
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Membership will be tiered, with initial fees based on turnover
05
Includes Trade Bodies, Public sector, Universities, Community Energy etc. where specific rules and features apply. For example, Trade Bodies will have the right to steer market development, Academic institutions may qualify for a short-term (project-related) Membership, and Public Sector are expected to be Local Authority data consumers.
04
This tier covers the smallest types of commercial organisation, which must have a turnover less than £1.7m
03
This is a company with a turnover in excess of £1.7m but less than £36m.
02
This is a company with an aggregate turnover of at least £36m.
Non-profit
Micro
Business
Small/Medium
Enterprise
Enterprise
Strategic
Partners
01
These are Regulated Entities with an obligation to share data. These are "anchor" members with regulatory obligations as Data providers such as a DNO (distribution network operator) or GDN (gas distribution network). This tier also applies to Enterprise Members that opt to take our Sponsorship package.
Implementation Partners | These are government bodies (such as BEIS, Innovate UK) that support Modernising Energy Data Access (MEDA), providing continuity funding as a runway to a long-term model. |
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What are the needs of typical Open Energy members in each tier?
Our approach is to understand end user and sector needs
Policy and public sector organisations need easily discoverable data that they can access quickly for use in data-driven decision making. Often working on short project timelines, quick and affordable access to varied data sources is a priority. In universities and research institutes, short projects give rise to similar needs for fast data access. Licensing clarity is another priority for researchers in particular, who need transparency and stability regarding permitted data uses in order to assess research feasibility and any ethical implications.
As the smallest commercial members who are more likely to operate on intermittent funding, micro-businesses need affordable ways to access and share data that can also support internal cost-savings. As microbusinesses are more likely to be building products or services hinged on reliable access to a smaller number of data streams, reliability of access is a priority to ensure their business can develop sustainably.
SMEs currently report data discoverability and access as some of the biggest barriers to business growth. Due to their smaller size, lowering costs associated with data access and sharing is also important. SMEs need ways to save time and money - e.g. by reducing legal costs or staff time - that can help their businesses develop.They also need access to reliable data streams on which to build data-driven products and services, that won’t fail technically or be subject to frequent license changes.
Enterprises need infrastructure to govern, share and access data safely and reliably. This can help them make the most of emerging commercial opportunities and new markets associated with energy system digitalisation and decarbonisation. These need to both access and share large volumes and diverse types of data. Service reliability is important to them and internal efficiency is a motivating factor.
Non-profit
Micro
Business
Small/Medium
Enterprise
Enterprise
Strategic
Partners
Energy networks have new regulatory obligations to share data and comply with the MED Data Best Practice Guidance. They also need to make good use of their rich data assets to support net-zero obligations. To do this, they need infrastructure, guidance and tools to help their large and complex organisations meet these obligations quickly and cost-effectively. As the energy data economy grows it will be increasingly important for networks to be able to service large volumes of data requests.
05
04
03
02
01
Non-profit
Micro
Business
Small/Medium
Enterprise
Enterprise
Strategic
Partners
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We provide a comprehensive service to our Members in each of the tiers
We will continue to develop as Open Energy matures
| Can be Data Provider | Can be Data Consumer | Can be Service Provider | Can apply to SG | Can apply to AG | Use Energy Search | Use Access Control | Service Desk | Sandbox | Comms | Steer Market |
Implementation Partner | * | * | * | * | * | * | * | SD1 | SD1 | S1 | * |
Strategic Partner | * | * | * | * | * | * | * | SD1 | SD1 | S2 | |
Enterprise | * | * | * | * | * | * | * | SD1 | SD1 | S3 | |
SME | * | * | * | * | * | * | * | SD2 | SD2 | S3 | |
Micro-business | * | * | * | * | * | * | * | SD3 | SD3 | S3 | |
Non-profit | * | * | * | * | * | * | * | SD3 | SD3 | S3 | Trade Bodies |
Everyone else | | | | | | * | | | | | |
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What does the comms support comprise?
We will grow awareness and understanding
Communications
S1
S2
S3
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DNOs as Data Providers are key for Data Consumers and Service Providers
Cost Reduction to Meet Regulatory Compliance
What does OE save in time, money, resource across:
New Service and Revenue Opportunities
What does OE enable?
Incremental revenue from:
Economies of scale as data industrialises:
The UK is about to invest £1,000,000,000 in modernising its energy infrastructure. All of this will be digital. Addressing interoperability ‘later’ will cost each company significantly more than arranging it jointly in advance.
The Open Energy service will create an estimated 50% cost reduction in data requests from 2022, before dropping substantially further.
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Go-it-alone
Many silos, many standards for search and data governance. This means that data discovery can be difficult and time consuming, and each request for access requires internal processing. This is hard to scale.
Every Data Consumer / Service Provider needs to discover the right data for their needs and to access shared data easily
Data Consumer
Data Consumer
Data Consumer
Data Consumer
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
Each individual DNO needs to:
● Make the data published easily discoverable ● Ensure that the Data Consumer is valid ● Enter into licence agreement
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Sandbox and Service Desk tiers
From self-service to custom support
All tiers have access to the same open-sourced code, documentation and sandbox functions
SD1
SD2
SD3
*Available means extra-cost services charged for based on customer requirements
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Why is Membership
important for a DNO?
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As data access requests increase, so automation will enable economies of scale
* Including internal legal, administrative, technical, data team, and misc. operational costs.
Number / cost of data requests
Electrified assets
Open Energy Costs
2020 2030 2040 2050
Number / £price
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Open Energy is hugely beneficial for DNOs - and all regulated Energy companies
In coming years, the UK’s drive towards digitalisation means: more best practices, guidances, regulations, compliance, standards, and governance.
Open Energy is a service designed by the sector, for the sector.
Instead of waiting for what is to come, regulated bodies including DNOs and GDNs can use Open Energy to shape the UK’s national strategy and set the regulatory framework.
It will make data work harder to deliver net zero and unlock greater efficiency and innovation throughout the UK energy ecosystem in the process.
Over time, Open Energy membership will accelerate digitalisation and decarbonisation:
Enable scalable data provision
Ensure regulatory compliance
Drive reduction in data sharing costs
Support innovation
Help drive UK
to net zero
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Three key issues for Data Providers
Data Sharing Regulations
GDNs and DNOs can use Open Energy to shape, and comply with, growing data-sharing regulations
Digital growth
Open Energy will enable GDNs and DNOs to achieve strategic objectives and develop new revenue streams
Cost effectiveness
Open Energy reduces the cost and scalability of sharing data for GDN’s and DNOs
Example�Flexibility markets could save the UK upto £40B by 2050 [Carbon Trust]
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Open Energy supports implementation of Ofgem’s Data Best Practice and Digitalisation Strategy and Action Plan
�
Data Best Practice (DBP) Principles | How does Open Energy support DBP? | |
Partly | Identify the roles of stakeholders of the data | Continuously identifies stakeholders for you, via, Advisory Groups, and sector engagements |
Yes | Use common terms within Data, Metadata and supporting information | Consolidates terms within data and metadata, guided by the industry |
Yes | Describe data accurately using industry standard metadata | Is helping industry to define a common metadata standard |
Yes | Enable potential users to understand the data by providing supporting information | Helps with creating 'core supporting information' |
Yes | Make datasets discoverable for potential users | The search function makes data discoverable |
Yes | Learn and understand the needs of their current and prospective data users | Data users are part of OE's governance; Data providers can directly talk to users to learn their needs |
Yes | Ensure data quality maintenance and improvement is prioritised by user needs | Notification system will provide you with data user issues |
Partly | Ensure that data is interoperable with other data and digital services | Enables interoperability by encouraging metadata descriptiveness and transparency |
Partly | Protect data & systems in accordance with Security, Privacy & Resilience best practice | Provides FAPI-Standard connections and strong governance, which ensure secure sharing of data |
Partly | Store, archive and provide access to data in ways that maximise sustaining value | Helps you retain control over your data |
Partly | Ensure that data relating to common assets is Presumed Open | Guided by industry, sets classifications for open and shared data |
Yes | Conduct Open Data Triage for Presumed Open data | Data Sensitivity Classes system complements Presumed Open and triage |
Digitalisation Strategy and Action Plan (DSAP) | How does Open Energy support DSAP? | |
Yes | Prioritise providing benefits to the stakeholders who pay for the products and services and also benefits to the broader Public Interest | Assists discovery of stakeholder benefits |
Yes | Ensure products and services work towards a defined vision | Has developed an industry-wide vision; DNOs can use this to complement their own vision |
Yes | Take full advantage of opportunities to deliver benefits early and to iterate improvements to products and services | Solution that is in the market now, ready to use |
Partly | Make it easy to understand the products and services, the status of their delivery and how to access them | Simplifies, as the solution is based on customer research and consultation on use cases and usability |
No | Ensure visibility about the nature and status of actions in the Digitalisation Action Plan | |
No | There is shared understanding of success and performance is measured | |
Yes | Coordinate with the wider ecosystem of products and services | Interoperable by design and coordination is at its core |
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What does this mean for Data Providers, Consumers and Service Providers?
Opportunities to benefit from a range new services, new revenue, better insight, greater efficiencies and regulatory compliance across the ecosystem
Operating cost reduction
Value-for-money service that reduces cost and resource required to manage data provision and access
Automates process across Legal, Operational, Technical, Data science and Administration functions
Realise economies of scale as data industrialises through Discovery, Governance and Standards
Accelerate digitalisation with commercially viable business models
Develop and deliver on digitalisation strategy with reduced time to market
Data Providers
Service Providers
Data Consumers
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Industry collaboration
Easily published, easily discoverable data with automated, scalable access control. This means that search and access can be automated, so it’s cheaper, interoperable, easier to integrate and scalable to meet increasing demand.
Every Data Consumer / Service Provider needs only one search and one access service
DNOs publish their data and then automatically:
● Authenticate ● License ● Apply policy and rules
Access Control
Makes it efficient and secure to access and share data that can’t be published openly for legal, privacy, commercial or security reasons
Data Consumer
Data Consumer
Data Consumer
Data Consumer
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
DNO/Data Provider
Energy Search
Makes it easier to find energy data
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Meeting energy sector requirements
Use cases
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Open Energy will remain driven by user needs
It will evolve to support a wide range of use cases, brought to life through our Members
Open Energy Members are represented at Advisory Groups which combine individual expertise to help understand how the UK may better modernise energy data access. The Open Energy Steering Group oversees this work, providing a focal point for reporting, challenge function and sign-off of the Advisory Group recommendations.
Open Energy is designed to deliver cross-industry alignment, clear use cases and a roadmap for future work that highlights gaps and opportunities together with recommended approaches and resolutions.
The User, Market and Societal Needs Advisory Group, first established in 2020, will continue to provide the focus on use case identification, evaluation, adoption and development.
Members can identify and propose use cases for evaluation through the Advisory Group (AG). Once accepted as a candidate, the use case will go through a thorough evaluation and will be prioritised according to a set of criteria pre-agreed with the AG. The AG will then request that selected use cases are agreed by Steering Group for adoption and therefore inclusion in the roadmap.
Open Energy
Advisory Groups
Open Energy Steering Group
Open Energy
Members
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In practice: Identifying, evaluating and adopting use cases
Proposed Use Case
What problem are we solving?
Who are we solving this for?
What solutions could be provided?
What benefits would this bring?
What data would this use case require?
Who would it involve?
Steering Group
Agree use case adoption and inclusion in the roadmap
Example use cases
Local Authority Community Retrofit
Balance National Grid
Natural Gas to Hydrogen Conversion
EV Driver Find and Charge
Local Community Energy
Home Energy Management Services
Members
Submit proposed use cases to Advisory Group (comprising Data Providers, Data Consumers and Service Providers)
Use Case Evaluation against pre-agreed criteria
User needs, impact (benefits, issues), industry engagement, technical feasibility, development required, cost proportionality, dependencies, regulatory and legal implications, existing or new datasets required, ethical considerations, business case (next phase criteria TBC)
Advisory Group Review
Consider results of use case evaluation and whether to recommend for adoption
Example use cases
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Membership
Fees
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Membership Fees: Summary of feedback from Consultation, Advisory and Steering Groups
We must have clarity on the proposition. Specifically, why is Open Energy attractive?
Open Energy must show a clear cost-benefit, be transparent on cost base and be sustainable without external support. Potential Members must be able to understand what data is available in order to allow ROI assessment
How will Members be represented, and what are their rights in the Advisory and Steering Groups?
Minimise friction and barriers to use within organisations
Treat energy network companies in their capacity as data providers as separate from their capacity as data consumers
The network licence obligations this service will support
The cost to network companies to comply with these obligations in the absence of this service
Incentivise publication of data
Is “size of entity” approach sufficient? Consider other dimensions including roles of Data Provider, Data Consumer and Service Provider, as well as aspects such as volume of data consumed
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Membership Fee and Governance milestones
Q3 21
Interim Fee Model Contributions pro-rata (to FY)
Q4 22
Finalise Final fee model for FY 23/24
Q4 21
Consult on governance (SG and AGs)
Q1 22
New Steering and Advisory Groups convened
Q2 22
FY 22/23 Will run under Interim Fee Model
Q3 22
Consult on Final Fee Model
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The Interim Fee Model will apply from August to March 2023
Annual fees: Consultation on a final fee model in H2 2022
Implementation Partners | £750k - £3M |
Strategic Partners | £120k |
Enterprise | £60k |
Small/Medium Enterprise | £9k |
Micro Business | £1.8k |
Non-profit | £1.8k |
Everyone else | For everyone else, including consumers, Open Energy Search is available at no charge |
All fees are ex-VAT
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The Interim Fee Model will be applied pro-rata from August until end of March 2023
Partial year fees for FY 2021/22 (applicable from 1st August 2021)
Implementation Partners | Continuity funding under discussion |
Strategic Partners | £10k/month (e.g. 6 months is £60k) |
Enterprise | £5k/month (e.g. 6 months is £30k) |
Small/Medium Enterprise | £0.75k/month (e.g. 6 months is £4.5k) |
Micro Business | £0.15k/month (e.g. 6 months is £0.9k) |
Non-profit | £0.15k/month (e.g. 6 months is £0.9k) |
Everyone else | For everyone else, including consumers, Open Energy Search is available at no charge |
All fees are ex-VAT
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Open Energy
will deliver significant and material benefits
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Open Energy is a powerful, transformative initiative
Regulatory compliance
Access Control for Energy data
Policy, legal and regulatory framework maturing, including cross-sector interoperability
Data
Data
Data
Data
Data
Data
Data
Economics of scale drive down costs to provide and consume data significantly
Data consumers understand impact of energy output and consumption for a wide range of use cases
Demonstrable, provable metrics for sustainability reporting (TCFD, CSRD)
Energy system investment clearly understood
Climate change mitigation strategy
Confidence that investments and initiatives are green
Competitive advantage gained via better understanding of risk and demonstrable sustainability
Capital is applied effectively to renewables and digital investment
ESG funding unlocked and accelerated growth in green economy
Transfer of capital from poor practice to good practice
Overall, contributes towards a reduction in financial markets systemic risk
Corporate and consumer behaviour change
Decarbonisation and overall reduction in GHGs
Decentralisation and adoption of low carbon technologies at community level
Improved environment
Improved biodiversity
Energy Search
allows easier discovery
Access Control
provides the enabling environment
Resulting in data being shared more easily, cheaply and widely
Insight enables informed decision making and provides advantage
Accelerated
development, growth
and reduced risk
Resulting in
Improved, greener outcomes
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The UK’s influence and leadership opens up huge international opportunities
Exports of infrastructure, services and expertise
Infrastructure
Rapid technology development based on digitalised services will make infrastructure “future-ready”, providing UK manufacturers with competitive advantage
Influential leadership in the battle against climate change
Demonstrating clearly how the UK, as a global centre for AI and data-driven innovation, supports renewables in our decentralising energy architecture, allowing efficiency gains and faster decarbonisation
Expertise
Leading-edge “know-how” will be in demand, benefitting the consulting sector and universities as other markets seek to capitalise on the opportunities
Energy Tech Services
New, innovative world-leading services using energy data will be in demand as the pace of energy digitalisation and decarbonisation accelerates
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