Energy Systems Catapult welcomes the opportunity to this Ofgem consultation on the next price control review of electricity distribution network operators (ED3).

Key points in our response:

The ED3 framework should align fully with the UK’s Net Zero targets, supporting decarbonisation by 2030 and enabling electrification in key sectors. Key recommendations include:

1. Flexibility by design: Flexibility should be central, with incentives to unlock local energy flexibility rather than defaulting to reinforcement investments. Transitioning DNOs to Distribution System Operators by 2030 is crucial.
2. Consumer-centric approach: Shift from input-based to outcomes-focused approaches, prioritising affordability, reliability, and service quality tailored to consumer needs, especially for vulnerable groups.
3. Innovation: Encourage innovation in technologies and business models, promoting third-party solutions and creating a level playing field.
4. Whole systems thinking: Clarify the definition of ‘whole system’ for ED3 to guide decisions and support complementary measures like dynamic DUOS charges.
5. tRESPs: Address inconsistencies in local input and data granularity to create a level playing field for DNOs and strengthen investment decision-making.
6. Digitalisation and data: Promote digital technologies and data analytics for efficient network management, ensuring robust data-sharing, cybersecurity, and innovation support.

These recommendations aim to modernise the electricity distribution network and support a sustainable, consumer-focused energy future.