What is an Independent Distribution Network Operator?
According to OFGEM, the industry’s regulator, electricity distribution networks carry electricity from the transmission systems and some generators (that are connected to the distribution networks) to industrial, commercial and domestic users. There are 14 licensed distribution network operators (DNOs) each responsible for a distribution services area. The 14 DNOs are owned by seven different groups. There are also four independent network operators who own and run smaller networks embedded in the DNO networks. Domestic and most commercial consumers buy their electricity from suppliers who pay the DNOs for transporting their customers’ electricity along their networks. Suppliers pass on these costs to consumers. Distribution costs account for about 20 per cent of electricity bills.
