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Electricity Networks PDF Print E-mail
Technologies - Electricity Networks
Electricity NetworksElectricity distribution networks carry electricity from the transmission systems and some generators that are connected to the distribution networks  to industrial, commercial and domestic users.

There are 14 licensed distribution network operators (DNOs) each responsible for a distribution services area. The 14 DNOs are owned by seven different groups. There are also four independent network operators who own and run smaller networks embedded in the DNO networks


Domestic and most commercial consumers buy their electricity from suppliers who pay the DNOs for transporting their customers' electricity along their networks. Suppliers pass on these costs to consumers. Distribution costs account for about 20 per cent of electricity bills.

Electricity distribution networks are monopolies because there is only one owner/operator for each area. Ofgem administers a price control regime that ensures that efficient distributors can earn a fair return after capital and operating costs whilst limiting the amounts that customers can be charged. Price controls are generally set for five year periods and the current price control runs from 1 April 2005 to 31 March 2010.

Supply Groups

One of the key challenges facing the electricity distribution industry is the connection of renewable and other generation plant to networks which have traditionally carried electricity from large power stations in one direction only.

Private Wire

Options for selling electricity from a decentralised energy scheme (DES) are:

1. Contracting with a licensed supplier for the sale of the electricity generated by the scheme (sometimes called a “spill” contract) 

2.
Selling to another consumer over the public network, however this is more complex and the scheme operator will incur charges to do this which can include (TUOS) Transmission and Use of System Charges and DUOS (Distribution and Use of System Charges)

3.
Connect the electricity generation plant in the DES directly to the consumer via a cable which does not form part of the public network (commonly know as “private wire”).  

Private wire systems can range from sites such as a university, school, hospital, leisure centre or civic building where the generation plant is located on the site and the generation plant simple connects into the existing on site electricity network which is owned by the consumer, to schemes where new cables are laid from the electricity plant of the DES to consumers, i.e. across an urban area or around a housing development. Top up and back up for this private wire network is then brought into the DES at the single site grid connection point, which is commonly at the energy centre where the electricity generating plant is located. A key document in relation to setting up a private network is the Electricity (Class Exemptions from the Requirements for a Licence) Order 2001, which sets out the limits for generation, supply and distribution of electricity without requiring a licence.

Distribution Map