Policy Submissions

S950 - Low Carbon Networks Fund – electricity demand


“Low Carbon Networks Fund – Electricity Demand” IET submission to Ofgem


Ofgem proposes to amend the Low Carbon Networks (LCN) Fund governance to allow DNOs to trial measures to shift or reduce electricity demand through LCN Fund projects.  The IET supports Ofgem's view that shifting or reducing electricity demand will provide DNOs with new options for managing network constraints in ways that are likely to be cost-effective and enable more timely responses to changing consumer requirements.


The IET offers suggestions for further refinement of the proposals to ensure that innovative approaches are not unnecessarily restricted.  These include a proposal that the wording should be sufficiently flexible to ensure that storage device control is not excluded. 


The IET proposes that the ‘demand side’ would be better described in the future as the 'customer side'. There is considerable potential for benefits to consumers from electricity demand reduction or time shifting but this is likely to be particularly challenging for the DNOs and may therefore be a low priority for their engagement.  It would be helpful to consider enhanced visibility of good practices and lessons being learned and targeted incentives.

Submission Details Submitted on 31 January 2013 to Office of Gas and Electricity Markets (Ofgem)

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Keywords and Search Terms Electricity demand reduction, Demand shifting, Electricity Network, Distribution Network, DNO, Electricity Storage, Low Carbon Network Fund, Customer side