AT A GLANCE

Challenges

  • Assessing the prospects of a single part of LV network operations  

  • The availability and consistency of information 

  •  The rate of change in technology applications  

Benefits

  • Clarity over the perceived importance of the technology by DNOs 

  • A client that understands the way in which regulation drives operational investment decisions 

  • A clear articulation of next steps and areas for further investigation 

Growth Strategy: The use of technology to support low-voltage operations  

“Our work helped our client to understand the dependencies between regulation, operations, investment in technology and approach to buying decisions among DNOs, as one strand of input into its investment decision making process” 

Our client objectives

Our client asked us to work with them to help them assess the way in which DNOs used a specific type of technology in their low voltage (LV) operations and the extent to which regulatory requirements were changing their approach over the next price control period.  They asked us to use our sector and regulatory expertise to assess the current market, identify the key growth drivers and provide guidance on the thinking of the regulator, to feed into their strategic decision-making.  

Our approach

We undertook a detailed review of the relevant part of the LV network operations, using our sector knowledge and targeted research. From this, we developed a suite of questions for discussion with industry contacts, focused on gaining additional insights into how the regulation might influence the scale and timing of current and future investment in this area, factors underpinning technology choices and the relative importance of this part of the market within the overall price control.  We provided a detailed picture of the current state of the market, its ongoing commercial dynamics and the key drivers influencing short and medium-term investment decisions, in particular the impact of regulation.  

Outcomes

  • We provided our client with a detailed view of how regulation has influenced, and continues to influence, operational investment in the LV networks. 

  • We identified the key drivers for growth and factors influencing buying decisions over the next regulatory period. 

  • We provided a view of future prospects in the market under a range of scenarios.