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The country’s ageing infrastructure assets continue to drive capital investment in the electricity distribution industry. Distribution network operators are also ramping up investment in new technologies to accommodate higher quantities of distributed generation and low carbon technologies on the grid.
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Table of Content
Gross capital spending driven by asset replacement and refurbishment activity
Figure 1: UK gross capital expenditure by the electricity distribution network operators, 2008/09-2012/13
Major variations in gross capital spending by geographical area
Figure 2: UK gross capital expenditure by the electricity distribution network operators, by company, 2008/09-2012/13
Non-load related capital spending to dominate network investment between 2015 and 2023, reflecting asset replacement requirements
Innovation to focus on smart grid technologies to facilitate the transition to a low-carbon economy
Low Carbon Network Fund provides support to DNOs to trial new technologies
Figure 3: Forecast network investment of the electricity distribution network operators in Great Britain, 2015/16-2022/23
Electricity supply market dominated by the ‘big six’ energy suppliers, with a combined market share of more than 90%
Average dual fuel bills more than doubled over the last 10 years
Figure 4: Breakdown of average domestic electricity household bill, as of January 2013
Roll-out of smart meters at centre of key changes to energy supply markets over the next few years
DNOs subject to price controls set by industry regulator Ofgem
Decarbonisation of UK economy to increase loads placed on distribution network
Renewables Obligation leading to rise in Distributed Generation
Renewable Heat Incentive (RHI) promotes take-up of heat pumps
Energy Company Obligation (ECO) scheme and Green Deal
Ofgem market review – Reforming the electricity retail market
Electricity distribution Industry
Introduction of competition in network connections
Electricity supply Industry
Proposed CMA investigation could lead to break-up of ‘big six’ energy suppliers
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Environmental and legislative factors
Climate Change Programme (including Climate Change Levy and Agreement)
Green Deal & Energy Company Obligation (ECO)
Ofgem Retail Market Review
Electricity Market Reform
The Renewable Heat Incentive
Combined Heat and Power
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