CIRED - The 23rd International Conference and Exhibition on Electricity Distribution - 15-18 JUNE 2015 - Lyon, France

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MICHÈLE DELVILLE

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Phone +32 (0)4 222 29 46

Session 6

SESSION 6 : CHALLENGES OF DSO REGULATION & COMPETITIVE MARKET

Session 6 deals with the essential dichotomy in the role of the modern DSO, being both an enabler in the competitive market place and a regulated natural monopoly. DSO’s are being faced with an increasingly challenging environment with new types of load, distributed generation and active customers. Simultaneously DSO’s are facing business risks associated with ageing assets and the increased requirements for transparency and efficiency in capital and operational expenditure.
DSO regulatory systems are diverse leading to speculation about the necessity and value of future harmonisation. As markets develop, simple price regulation is being replaced by more complex arrangement that incentivise power quality, reduction of losses, sustainability and a commitment to R&D and the roll out of new technologies.

Metering, settlement and info ownership and integrity
* DSO process improvements based on meter data
* National incentives and regulation for roll-out of smart meters
* Requirements for meter data handling, security & integrity
* Meter information ownership, usage and 3rd party access
* Need for standardization and benefit of scale
* Settlement and balancing of the local network

Involving the consumers and producers
* What incentives trigger the customer
* Curtailment, demand response and demand side management
* Customer’s need for information
* Energy services and supporting tools for the customer
* Innovative and harmonized tariff structures
* Incentives for small scale generation and storage
* Aggregation / pooling of loads and connected business models

More challenging DSO business environment
* European Network Codes
* Business risks of aging assets
* Risk management in a regulated environment
* Business challenges with new types of loads and generation
* Energy efficiency requirements
* Network business efficiency and key performance indicators
* Long-term (>10 years) strategic asset management vs. short-term regulation optimization
* New employee skill requirements
* Evolution of DSO system services (balancing, storage, etc.)

Regulation and market development
* Power quality regulation vs. income/cost regulation
* Incentives for research and innovation in regulation
* New market models impact on DSO
* Regulation and market solutions for improved sustainability
* Regulator and customer expectations of DSO role & performance
* Regulation harmonization (national/European)