Distribution Network Operator (DNO) meaning

In this issue: Electricity and gas market regulation and licensing Networks and network connections Renewable energy Hydrogen, CCUS and emerging technologies Oil and gas Energy disputes Air emissions, efficiency and climate change International energy New and updated content Dates for your diary LexTalk®Energy: a Lexis®Nexis community Daily and weekly news alerts Electricity and gas market regulation and licensing Ofgem finalises updated licence application guidance with immediate effect Following an April 2025 consultation, Ofgem has confirmed it is bringing revised licence application guidance into force straightaway. The document applies to both gas and electricity licensing and brings a number of enhancements, such as refreshed explanations of the tacit authorisation route and better arrangements for issuing application notices. See also: LNB News 02/03/2026 42. NESO opens feedback window on methodology areas for Regional Energy Strategic Plans The National Energy System Operator (NESO) has launched a fortnight-long call for comments to obtain...

For fuller commentary on the regulation, consenting and incentivisation of the net zero energy transition under the laws of England and Wales, see also: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. That textbook contains in-depth treatment of the topics addressed in this Practice Note. What is TMO4+? ‘Target Model Option 4 +’ (TMO4+) is a significant suite of reforms endorsed by Ofgem in April 2025, amounting to a comprehensive reset of Great Britain’s electricity grid connection processes. The package was driven by the UK government’s climate commitments and by persistent inefficiency and delay in the existing connection process, which have created substantial obstacles to investment and the deployment of renewable energy. This section briefly outlines the TMO4+ measures, highlighting the contrast between the previous grid connection system and the arrangements introduced through TMO4+. It also flags the energy market participants most likely to be impacted by TMO4+ reforms. Background Pre‑TMO4+, the route to obtaining a grid connection to both the...

Power offtake arrangements In project-financed power generation schemes, a central document is the power offtake agreement. Commonly termed a ‘power purchase agreement’ or PPA, it is usually a contract between the generator and a licensed electricity supplier acting as offtaker for the plant’s entire output. PPAs of this sort are typically on the supplier’s standard terms, which most funders recognise. For our key resources on PPAs, see: Power purchase agreements and routes to market—overview. These agreements tend to favour the offtaker and securing substantial revisions is generally challenging. An alternative offtake model arises where the generator links directly to one or more local consumers via a ‘private wire’, with those customers purchasing electricity straight from the power station. In broad terms, ‘private wires’ refers to electricity distribution systems not owned or operated by a distribution network operator (DNO) licensed under section 6 of the Electricity Act 1989 (EA 1989). For ease, post‑liberalisation distributors known in the industry as ‘independent’ DNOs or ‘IDNOs’ are treated as DNOs. Private wire arrangements...