Distribution network operators (DNOs) across Great Britain will need to make significant investments in network infrastructure in the near future in response to the ongoing decentralisation of power generation, the digitalisation of energy systems, and ambitious decarbonisation targets set by legislators.
At the same time, customer representatives and regulatory authorities are exerting ever greater pressure on the sector to reduce bills amidst an ongoing threat of re-nationalisation.
Recent regulatory determinations for transmission and gas distribution (known as ‘RIIO-T2’ and ‘RIIO-GD2’) are a good indication of what DNOs can expect from the upcoming price control for electricity distribution (‘RIIO-ED2’). DNOs also have a unique opportunity to help determine how best to reduce customer bills while also investing to develop sustainable networks.