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UK Power Networks launches nation's first independent Distribution System Operator

UK Power Networks has launched the nation’s first ever independent Distribution System Operator (DSO), to help meet expected increased electricity demand as part of the net zero transition.

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The DSO will support expected increased demand for electricity as part of the net zero transition

UK Power Networks’ new DSO will ensure that sufficient electricity capacity exists across London, the East and South East to support the anticipated uptake of electric vehicles (EVs), heat pumps and renewables generation. The DSO is working to incentivise customers to shift their energy consumption or generation, to maximise use of its existing electricity grid infrastructure and facilitate the lowest cost transition for customers adopting low carbon technologies.  

Jonathan Brearley, chief executive of Ofgem said:

“We are in a massive transition across the country and that means a lot of really big stuff is being built. We’ve talked about transmission assets, we’ve talked about big offshore wind farms happening but the same is happening locally and we need to make sure we have an integrated plan.

“At the heart of this is Distribution System Operators and it’s great to see UK Power Networks leading the way. I’m really hoping that the DNOs make sure they are developing compelling and ambitious plans in terms of their version of the DSO model, but ultimately we will look nationally, pick out the best bits and make sure we have a system that functions for this massive transmission that we’re on.”

Basil Scarsella, UK Power Networks chief executive officer added:

“The DSO marks the start of a new era for electricity networks across the UK. We are pleased to be leading the way in supporting the energy transition through the launch of our DSO. It is an independent, legally-separate entity, which we are confident will bring savings to customers, inform our network investment decisions in the most cost-efficient way and help the facilitate the transition to Net Zero.”  

UK Power Networks currently has 7.4GW of renewable energy connected to its network, and is preparing for 2.6 million EVs in its regions by 2028, compared to 450,000 vehicles currently charging from their grid. 

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