TSO/DSO roles

We said we would continue to support and contribute to the national working party on the development of TSO/ DSO roles and keep customers informed of the outcomes.

The ENA Open Networks Project, launched in 2017, is a major energy industry initiative that will transform the way our energy networks work, underpinning the delivery of smart grids and a more flexible energy system.  

The project brings together key industry players including electricity grid operators, respected academics, Non-Government Organisations, Government Departments and the energy regulator Ofgem.  Early development work was undertaken under the banner of the ENA TSO-DSO Project, but that this was renamed to the ENA Open Networks Project to better communicate what it was trying to achieve.  The project will:

• Give households, businesses and networks the ability to take advantage of new energy technologies to take control of their energy and lower their costs;
• Help underpin business growth, attract investment and deliver real economic benefits to the UK; and
• Take a whole energy system approach to designing solutions by consulting with a wide range of stakeholders, including the gas networks, and through an Advisory Group.

We made a commitment to continue to support and participate in this national working group on behalf of our customers and to keep them informed about the progress and any outcomes. We want to ensure our stakeholders and customers are fully briefed on the development of TSO/DSO roles and the opportunities it will bring.

Throughout the course of the ICE plan year, we have taken every opportunity to engage with our stakeholders and customers on the topic. We  hosted a DSO webinar and Q&A session in September 2017 where we shared our vision for the future and gave and update on the project.  The development of TSO/DSO roles was discussed at  our national DSO launch event in November 2017 where Jason Brogden (ENA Open Networks Programme Director) chaired one of the stakeholder panel sessions and promoted the ongoing ENA work. Future energy arrangements and the Open Networks Project were also important areas of focus at our regional DSO launch in January 2018 and we briefed stakeholders attending our  bi-annual Connections Customer Forums in April and November 2017.

In summary, the focus of Open Networks Project during the course of the last ICE plan year has been to:

• Develop improved Transmission/Distribution processes around connections, planning, shared TSO/DSO services and operation;
• Assess the gaps between the experience customers currently receive and what they would like, and identify any further changes to close the gaps within the context of a ‘level playing field’ and common Transmission and Distribution approach;
• Develop a more detailed view of the required transition from DNO to DSO including the impacts on existing organisation capability; and
• Consider the charging requirements of enduring electricity transmission/distribution systems.

The project published a 2017 year-end report “Opening Markets for Network Flexibility 2017, Achievements and Future Direction” which describes the background and scope of what the Open Networks Project has delivered so far and is aiming to achieve going forward.  The report also sets out:

• The whole system approach to development;
• The work to date focused on the customer experience;
• How the project is delivering the objectives set out in the Ofgem and BEIS Smart Systems and Flexibility Plan:
• Opening up the delivery of network requirements to the market so new solutions such as storage or demand side response can compete directly with more traditional network solutions, including as an alternative to reinforcement; and
• Mechanisms for transmission and distribution coordination which enable whole system network requirements to be identified and acted upon efficiently, in the best interests of the consumer;
• The project’s support to whole system network charging reforms including Ofgem’s Charging futures work and Targeted Charging Review (TCR) and;
• The development work planned for 2018 as well as a vision of the next steps for the Open Networks Project (Phase 2 Project Initiation Document).  

The activities of the national working group are on-going and we will continue to support and participate in the activities of this group on behalf of our stakeholders and customers. We will continue to keep you informed with updates at future stakeholder events and engagement opportunities.    

• You can watch a short video that introduces the ENA Open Network Project here 
• A useful factsheet on the project and its objectives can be found here 
• You can watch the webinar we held in September 2017 where we discussed our transition from a DNO to a DSO, hosted by Jim Cardwell, Northern Powergrid's Head of Innovation and Trading and Andy Jenkins, Head of Network Trading here. 

If you have any questions or would like to give us feedback on this action and its outcomes you can email us at [email protected].