Ofgem has unveiled a blueprint for the electricity distribution price control period set to kick off in April 2028, which will see the UK through a crucial period as it bids to realise a clean power system by 2030.
ED3, which will run for five years through to March 2033, sets the outputs that the electricity distribution network operators need to deliver for their consumers. Ofgem believes the outputs through this period will be crucial in unlocking the unprecedented levels of investment that are needed to expand access to clean and affordable power in towns, cities and communities across the country.
In particular, the framework guides investment and delivery of key network services with a focus on four main areas – the first of which is networks for net zero. A more proactive approach to investment here will ensure that networks are ready for the net zero future, with companies funded and held firmly to account for delivering the infrastructure that is needed to meet growing demands for electricity.
It is pledging to drive network companies to minimise environmental impact and deliver excellent customer service, with new measures ensuring that electric vehicle charging points, renewable generation, and housing and industry are able to connect to local grids in a “speedy and efficient” fashion, while it also acknowledges that the digitalisation of the energy sector is to prove crucial to realising a more efficient and resilient system. Therefore, ED3 will call for the network operators to enhance their data sharing and processing capabilities, with continued use of incentives and funding to help drive innovation in how they plan and operate their business.
Finally, with society growing more dependent on electricity for power, transport and heating, Ofgem recognises how it is now “even more essential” for network operators to maintain and replace assets, ensuring their networks are reliable both today and in the future, while also proving able to withstand future risks including extreme weather and cyber-attacks.
Steve McMahon, Ofgem Director for Network Price Controls, described local electricity distribution grids as “central” to the clean power mission. McMahon continued: “The scale of the opportunity is clear, and it is vital we take a new strategic regulatory approach, enabling more planned, proactive investment in network capacity whilst ensuring speedier and more efficient connections of new technologies.”
