Recently, the Centre for Sustainable Energy (CSE) has responded to an Ofgem consultation on Distribution Network Operators (DNOs) role in supporting the rollout of low carbon technologies.

We agree that DNOs should participate in co-ordinating and supporting a cost-effective energy transition, emphasising the importance of keeping costs down due to rising network charges and consumer pressures.

At the same time, we raise concerns about potential overlaps with the Warm Homes Agency (WHA) and Regional Energy Strategic Planning (RESP) processes, especially regarding prioritisation of retrofit areas, coordination of funding, and provision of advice. There needs to be clear decision-making processes and oversight to avoid inefficiencies and duplication.

Nevertheless, there is the potential for an expanded role for DNOs in coordinating the rollout of LCTs and energy efficiency. We think that the following activities and behaviours are suited for a DNO when supporting the uptake of LCTs:

• Identification of priorities – all DNOs should provide local authorities and trusted intermediaries with a list of areas that are a priority for retrofit. This should cover the optimal retrofit strategy for an area: what technologies are needed (batteries, PV, insulation and / or heat pumps), vulnerability (PSR, fuel poverty), network cost (reinforcement), and other known plans (e.g. DESNZ Heat Zones). It’s important that these areas are seen by the RESP as a priority for area based retrofit schemes and as such incorporated in local authority plans when delivering the Warm Homes plan (WHP). Our Director of Development and External Affairs, Ian Preston, shared:

We’ve seen a number of documents and consultations that talk about area-based approaches to delivery, but there’s not enough clarity about who decides what the priorities are and who holds the reigns for the various pots of money.

• Open access to data – all DNOs should support area based retrofit programmes by making data on the low-voltage network available.
• Proactive investment in the low-voltage network – as specified in the Warm Homes Plan (WHP) we see a role for DNO’s removing barriers to households installing low carbon technologies.
• Supporting community engagement – the WHP represents capital funding with no funding for capacity building or advice that’s not a key component of the retrofit journey. As part of their coordinating role DNOs should be funding community groups and trusted intermediaries to support the delivery of area-based programmes, i.e. handholding vulnerable clients, recruiting householders, snagging issues and acting as a community liaison.
• Recognising the value to the network – as part of area-based programmes delivered under the WHP, DNOs should be funding those aspects of an installation that resolve network constraints more cheaply than physical reinforcement i.e. bring bill reductions for consumers.
• Supporting community scale delivery models – it’s disappointing that both this consultation and the WHP fail to recognise the opportunities associated with community scale batteries and low carbon technologies. A shift to area-based programmes provides an opportunity for DNOs to work with local authorities and community actors to fund community scale assets that deliver community wide benefits – offering far greater efficiencies than bulk buying LCTs for homes.