Enabling a major UK utility to achieve best value from regulatory change

As the UK aims for net zero by 2050, Distribution Network Operators (DNOs) will need to develop their infrastructure to accommodate the triple forces of digitalisation, decarbonisation and decentralisation ­which will transform utilities in the coming decades.

To prepare for the challenges ahead, one UK DNO had to submit investment plans to the UK energy regulator, for the upcoming RIIO-ED2 electricity distribution price control period. The plans focused on the utility’s entire Information Technology and Operational Technology portfolio – and at stake was potentially hundreds of millions of pounds of government funds critical to the utility’s future plans.

The DNO appointed Enzen as an advisory partner for our vast experience in the UK electricity industry and our existing relationships with other networks.

Adopting a highly collaborative approach with the utility’s senior stakeholders, our Regulatory and Advisory team developed the customer’s RIIO-ED2 IT/OT portfolio. We worked through the full project lifecycle, from developing business cases to the ongoing provision of support required to respond to the regulator's Draft Determination.

The final submission was fully aligned with the primary business drivers detailed in the DNO’s business plan. It fully supported the key stakeholder priorities, provided evidence of deliverability, a portfolio plan and outcomes of benchmarking activity.

With Enzen’s support, a portfolio of 14 investment proposals, associated business plan data tables and strategy papers were successfully submitted to the regulator.

Following the final submission, we supported all the customer’s stakeholder engagement, including interaction with the regulator, until the DNO received the final determination. This was extremely favourable, with the client achieving a very high percentage of the allowances originally requested.