Conclusions Paper on Incentives Schemes for Regulating Distribution System Operators (DSOs), including for innovation

This CEER Conclusions Paper on Incentives Schemes for Regulating Distribution System Operators (DSOs), including for innovation is the result of a public consultation, a workshop in April 2017 and CEER’s own deliberations on the topic in light of the input received. The paper addresses the changing needs and aims of regulation, which are driven by ongoing market developments and the energy transition. The paper focuses on 4 aspects of regulation:
- the changing aims of regulation
- approaches of good practice on the balancing of regulatory choices
- innovation and
- steps to reach an optimal outcome for the whole system.
This CEER Conclusions Paper lists the main goals that regulators should pursue in their regulation of DSO regulation, including 10 key recommendations for creating optimal incentives schemes, particularly for the encouragement of innovation. Advocating a “whole system approach”, requires the DSOs to look at the societal net benefits for the whole system, rather than the impacts only on their own grid.
An annex to the document contains an evaluation of responses to the public consultation.