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Governance scenario

DSO Transition

Ofgem reviews whether DNOs are genuinely transitioning to DSO capabilities or gaming the framework. Evidence of favouritism toward DNO-affiliated flexibility providers emerges.

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This is a fictionalised teaching scenario grounded in real institutional roles, published reforms, and current public-source context.

Scenario player

Work through the decision path below. Each choice changes the route, the institutional trade-offs, and the metrics the scenario tracks.

DSO Transition

Step 1 of 2

Ofgem

Transition compliance audit

Ofgem conducts DSO transition audit of Thames Valley Networks. The audit finds that whilst TVN has created DSO governance structures, they are preferentially engaging with affiliated flexibility providers and delaying engagement with independent competitors. TVN justifies this as 'efficiency' (known providers have existing systems integration). Independent providers say they are being frozen out of the market.

What is at stake

  • -If you find market neutrality violations, you must take enforcement action.
  • -If you ignore them, you undermine DSO credibility.
  • -If you set enforcement standard too high, you stifle DSO transition.

What compliance finding do you issue?

Current Metrics

Operational Efficiency58
Stakeholder Trust54
Net Zero Progress65
System Security70
Affordability60
Customer Protection62

Actors Involved

OfgemUKPNFlex ProvidersCitizens Advice

Regulatory Context

DSO Capability Maturity Framework and RIIO-ED2

Governance relationship map

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Operating loop breadcrumb

Governance→Planning→Operations→Outcomes→Evidence

Current focus: Rules and accountability

Legend

Governance and policy

Rules, remits, and accountability

Planning and investment

Connections, queue progression, and delivery planning

System operations

Real-time balancing and network operation

Market and consumer outcomes

Prices, settlement, reliability, affordability

Evidence and learning

Telemetry, assurance, and continuous improvement

Glossary

  • Dispatch

    Real-time instructions to increase or reduce generation or demand so supply stays in balance.

  • Balancing

    The continuous process of matching electricity supply to demand while maintaining system frequency.

  • Constraint

    A technical limit in the network that restricts how power can flow under current conditions.

  • Industry code

    A formal rulebook that defines obligations and processes for specific market and network activities.

  • Connection agreement

    The formal agreement setting technical and milestone conditions for connecting a project to the network.

  • Settlement

    The process that turns metered and contractual positions into final market cashflow outcomes.

  • Conformance gate

    A quality checkpoint that verifies whether data or implementation meets agreed standards.

  • LTDS

    Long Term Development Statement publication requirements for distribution network data.

Guided tour

Step 1 of 8

Who sets the rules?

Start with governance: policy direction, regulatory oversight, licences, and code obligations.

Why it matters: Newcomers should first understand where authority sits before interpreting operational decisions.

Open Ofgem licence and code guidance

Preparing system graph…

Use this map to keep scenario decisions anchored to policy, coordination, operational delivery, and evidence feedback relationships.

Sources and methodology

How this page was assembled

Scenarios are designed as regulator-safe teaching runs. Institutional roles, programme context, and cited reform pathways stay grounded in current public sources, while event details and numbers inside the run remain fictionalised unless explicitly evidenced elsewhere. This scenario is framed against DSO Capability Maturity Framework and RIIO-ED2.

Last reviewed 18 March 2026

Primary sources

Ransford's Notes