Recommendation 56

In future, data and visibility will be key to ascertaining whether network reinforcement or an alternative, such as procuring flexibility services, would be most cost effective for consumers. But there has been insufficient investment in monitoring capability at low voltages to date, resulting in poor visibility of connected assets and the state of the distribution networks. It is also unclear whether all distribution operators are maximising the opportunities of a smarter, more flexible grid. We recommend firmer intervention from Ofgem on minimum visibility standards for Distribution Network Operators. We also recommend that Ofgem reviews whether it has robust processes in place to monitor whether Distribution Network Operators are taking a ‘Flexibility First’ approach and making sufficient use of smart solutions.