1. Regulatory ‘Do’s’ and ‘Don’ts’ for DSOs to serve consumers’ interests Garrett Blaney co-chair, CEER Distribution Systems Working Group CEER Annual Conference 19 September 2017

2. Context: New Central Role for DSOs
Prosumers
DSOs
Flexibility to wholesale markets
New Customer Services
Enabling Storage
New relationship with TSOs
New customer loads – EVs, Heat pumps, etc.

3. DSO activities Regulators Encourage – the ‘DO’s’
Efficient Total Costs
Maintaining efficient levels of quality and service
Innovative Solutions
Close Liaison with TSOs
Neutral Market
Facilitator
Regulatory Incentives

4. DSO activities Regulators Discourage – the ‘DON’Ts’
Do not abuse monopoly position
Market
DSOs must not use their monopoly position to distort the wholesale or retail markets
No ownership of assets that distort the market
Ownership
Storage
EV charging
Demand side devices
Avoid opacity on planning and operation
Transparency
DSOs need to share data with trusted parties to facilitate new solutions

5. DSOs and the Clean Energy Package
Networks
DSO is a neutral market facilitator: storage & EV charging ownership are competitive activities
Maintain flexible local solutions rather than distribution tariff harmonisation / Network Code
No mandatory approach on DSO revenue incentivisation
Better planning and coordination:
TSOs/DSOs to consult and take responsibility for network plans
Regulatory discretion is better than exemption for plans of small and integrated DSOs
Have requirement for EU DSO and ENTSO-E to coordinate
TYNDP and NDPs subject to regulatory approval
Renewables
Renewable self-consumers and energy communities:
Definitions in RES and Elec Directives should be refined and consistent
Consumer involvement should be voluntary with consumer rights protected
Prevent cross-subsidies between consumer groups: use cost-reflective network tariffs and avoid net metering
Energy communities that operate as a DSO should be regulated as a DSO

6. Key CEER papers on DSOs Completed Under Development
The future role of the DSO - A CEER conclusions paper – July 2015
CEER Status Review on the implementation of DSO unbundling – April 2016
CEER Discussion paper on scoping of flexible response – May 2016
CEER Position Paper on Principles for Valuation of Flexibility – July 2016
CEER Position Paper on the Future DSO and TSO Relationship – September 2016
CEER Guidelines of Good Practice on Electricity Distribution Network Tariffs – January 2017
Guidelines of Good Practice for Flexibility Use at Distribution Level – Consultation Paper – March 2017
Under Development
CEER Report on Power Losses (for approval at 20 September 2017 GA)
Guidelines of Good Practice on Incentives Schemes including Innovation – Conclusions Paper
Guidelines of Good Practice on Flexibility Use at Distribution Level – Conclusions Paper
Report on New Services and Associated Activities for DSOs
The Role of the DSOs; Facilitating Flexibility; Distribution and Transmission Network Tariffs and Incentives; Efficient System Operation; Renewable Self-Consumers and Energy Communities