proposed framework for the electricity distribution price control

Ofgem's Proposed Framework for Electricity Distribution Prices

Control (ED3) As we look toward a more sustainable and electrified future, Ofgem is working to shape the next electricity distribution price control, set to begin in April 2028. This “ED3” framework will play a critical role in supporting the energy transition across the UK, and Ofgem has opened a consultation to gather input from stakeholders—consumers, distribution network operators (DNOs), government bodies, and other interested parties—to refine this pivotal plan.

ED3 Framework

The electricity distribution network serves as the backbone of our power system, connecting electricity from large transmission networks to homes, businesses, and new energy solutions like embedded generators and energy storage assets. Ofgem, as the regulator, manages this network through a price control framework. This structure determines the amount DNOs can charge and the investments they are allowed to make to ensure the network’s performance aligns with the nation’s broader energy goals.

The upcoming ED3 period marks a key stage in transforming the grid, as demand for electrification grows and renewable energy generation increases. Aiming to shape a network capable of meeting these demands, Ofgem is seeking stakeholder insights to ensure the framework balances innovation, consumer interests, and sustainable growth.

Why Stakeholder Views Matter A central part of this consultation is understanding how to evolve the framework to serve both current and future needs. Ofgem has called on individuals and organisations connected to or impacted by the distribution network—including DNOs, consumer advocacy groups, renewable energy providers, and investors—to share their insights on key areas like:

Overarching Framework Objectives: What should the guiding principles be for this new price control period? As electrification and renewable integration expand, it’s critical that the framework encourages sustainable growth and ensures consumer protection.

Regulatory Models: Ofgem is open to exploring new regulatory models that adapt to evolving industry dynamics. Your input could help shape how regulation supports innovation while maintaining accountability.

Consumer Outcomes: Ofgem wants to ensure that consumers benefit from both the affordability and reliability of electricity. The consultation welcomes ideas on how DNOs can be incentivised to prioritize these consumer outcomes.

Future Challenges and Opportunities: The shift to net zero will require substantial network upgrades. Feedback on how the framework can address anticipated challenges—such as infrastructure investment, the integration of distributed generation, and increased demand—is crucial for Ofgem’s decision-making.

Shaping the Path to Net Zero Together The ED3 framework is a vital step in the UK’s journey toward a net zero economy, enabling DNOs to provide the infrastructure necessary to meet increased electrification demands and incorporate renewable energy sources. Your feedback will directly impact how Ofgem structures this framework, ensuring that the system evolves to meet both current and future needs while protecting consumer interests.

For more information on the consultation and details on how to participate, visit Ofgem’s ED3 framework consultation page.