Citizens Advice published its response to Ofgem's consultation on the future role of distribution network operators (DNOs) in supporting the rollout of low carbon technologies on 1 April 20261. The consumer body said it is unconvinced by the evidence Ofgem has provided so far and recommended that the regulator does not pursue an expanded DNO role unless compelling evidence emerges before the sector-specific methodology decision (SSMD)1.
The consultation concerns whether DNOs should take on a wider part in coordinating energy efficiency and low carbon technologies, either operationally or through financing. Citizens Advice said any such involvement must not distract DNOs from their core activities1. It added that addressing fuel poverty is not the statutory role of DNOs, and that it would need to see more evidence of a correlation between network needs and fuel poverty before supporting fundamental changes to that role1.
"We consider that local authorities are a more natural home for targeting support at those in fuel poverty"
The response notes that many DNOs and gas distribution networks already work closely with local authorities, and that it expects further coordination through NESO's Regional Energy Strategic Planning (RESP) programme1. On the current price control period, ED3, Citizens Advice said it can see a stronger case for DNOs playing a larger role in coordinating energy efficiency and low carbon technologies if Ofgem wishes and is legally able to pursue changes, and that there are opportunities for efficiencies which could ultimately lower costs and inconvenience for consumers1. It remained unconvinced by the evidence provided for ED31.
| Period | Citizens Advice position |
|---|---|
| ED3 (current) | Does not support an expanded DNO role for low carbon technologies and energy efficiency unless compelling evidence emerges before SSMD1 |
| ED4 (2033 to 2038) | Open to Ofgem exploring the role of DNOs and building the evidence base1 |
Why it matters for households
DNOs own and operate the local wires that carry electricity to homes, and their costs are recovered through network charges on bills. Whether they take on work beyond that core role, such as coordinating energy efficiency measures or low carbon technologies, therefore has a direct bearing on what households pay and on how quickly measures such as heat pumps and solar panels can be connected. Citizens Advice's position is that any expansion should be justified by evidence and should not come at the expense of the networks' existing duties1. Its preference for local authorities as the route to support fuel-poor households, rather than DNOs, reflects a view about which body is best placed to identify and reach those homes1. For a household considering low carbon technology, the practical questions of who coordinates installation support and who pays for any network reinforcement remain open on the evidence published so far.
What happens next
Citizens Advice has recommended that Ofgem does not pursue an expanded DNO role further unless compelling evidence emerges before SSMD1. It has said it is open to Ofgem exploring the role of DNOs and building the evidence base ahead of the 2033 to 2038 ED4 price control1. No date for a decision has been reported.