Ofgem calls on DNOs to do more to strengthen network resilience to storms and improve support for customers

Today (Wednesday 8 October, 2025) Ofgem has published a methodology consultation for the landmark local electricity distribution price control for the five year investment period starting in April 2028 (known as “ED3”). 

This critical period will be pivotal in unlocking unprecedented investment to expand access to clean, affordable power for cities and communities across Great Britain, supporting further electrification of heat and transport and laying the foundations for the wider decarbonisation of the economy. 

In today’s publication – which builds on the transformational framework set out in April this year – Akshay Kaul, Ofgem’s Director General for Infrastructure, calls on Distribution Network Operators (DNOs) to do more to speed up connections to the local electricity grids, strengthening their resilience and reliability, and further improving customer service. This is alongside a number of other proposals on how we intend to regulate the cost and quality of service from DNOs during the period.   

Following the first named storm of the season last weekend, you may be interested to note the following comments in Akshay’s foreword, which can be read in full in the policy document linked here:  

“We expect DNOs to do more on securing the longer-term resilience of the networks, including to climate shocks such as storms, so that customers are reconnected as fast as possible and looked after well while they wait for power to be restored in the wake of storm damage. 

“More broadly, we want DNOs to do more to minimise the impact that power cuts - even very short ones - have on customers.  While our distribution networks are highly reliable, a short interruption of even a few seconds can be hugely disruptive for some customers. For other customers the consequence of a lengthy disruption can bring with it health and well-being concerns. 

“To meet our expectations for equivalent levels of service, DNOs will need to more fully consider the effect an interruption has in the type and level of service they provide. 

“This intent to encourage the networks to do more has informed our methodology consultation.  Some of these areas will require new and innovative approaches to setting a price control.  

“If we can harness the full potential of the local electricity grids that service our homes and communities, the benefits to energy consumers as well as the wider economy could be huge. This task is now urgent. There is not a moment to lose.” 

The consultation, which is open until 3 December 2025, will seek views from stakeholders with an interest in the regulation of energy networks, including consumer groups, DNOs and industry. 

 

For further background:  

In the consultation document Chapter 6: Resilient Networks highlights that while Britain has one of the most reliable energy systems in the world, our deepening dependence on uninterrupted power for heating, transport, digital services and industry elevates new risks. 

Climate extremes are becoming more frequent and severe, testing the physical limits of networks built for a stabler past. At the same time, cyber threats are multiplying as networks digitalise, and global supply chains for critical components are stretched, with lead times for some transformers, cables, and wood poles now measured in years instead of months. 

This convergence of rising exposure and intensifying risk demands electricity networks that can absorb bigger shocks, adapt to change and energise our economy.  

• 6.2 points out: Against this backdrop, ED3 must change how we plan, fund and hold companies to account for network resilience. This means moving beyond incremental improvements to a whole-system approach that anticipates risks, embeds flexibility, and ensures that resilience is integrated into every aspect of network operation and investment. 

• Para 6.108 explores expanding financial penalties for extended unplanned interruptions 

• Para 6.97 onwards considers possible changes to the price control so that DNOs look to minimise occurrences of short, long and multiple outages being experienced.  

 

This consultation follows work previously done by Ofgem to improve protection for customers affected by storm damage.  

In September 2023, Ofgem announced an increase on the storm compensation cap from £700 to £2,000 following the findings of its review into the response to Storm Arwen by distribution network operators (DNOs):  Ofgem announces rise in storm compensation cap from £700 to £2,000 | Ofgem. This has subsequently been increased to £2165 from April this year 

• Information re power cuts  Plan for a power cut | Ofgem 

• Information re compensation can be found here : Compensation for energy supply issues | Ofgem 

• Information on the priority service register  Join your supplier’s Priority Services Register | Ofgem 

 

Hope this is helpful to you. 

 

Best wishes 

Euan