In this insight paper we discuss:
The focus of this paper is on the early stage development of the RIIO-ED2 price controls, starting in April 2023, and regional flexibility markets. It covers:
- Potential new roles for distribution network operators (DNOs) as they transition to a more active role as distribution system operators (DSOs)
- Ofgem’s announcements to date on its policy for regulating distribution system operators
- Challenges for the regulatory in managing the uncertainty of the DNO to DSO transition when setting a five-year price control
- Pros and cons of the regulatory approaches which Ofgem could pursue
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