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<br /> <br /> These materials are © 2020 John Wiley & Sons, Ltd. Any dissemination, distribution, or unauthorized use is strictly prohibited.<br /> DSO<br /> CGI Special Edition<br /> by Rich Hampshire<br /> These materials are © 2020 John Wiley & Sons, Ltd. Any dissemination, distribution, or unauthorized use is strictly prohibited.<br /> DSO For Dummies®, CGI Special Edition<br /> Published by: John Wiley & Sons, Ltd., The Atrium, Southern Gate Chichester, West Sussex,<br /> www.wiley.com<br /> © 2020 by John Wiley & Sons, Ltd., Chichester, West Sussex<br /> Registered Office<br /> John Wiley & Sons, Ltd., The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ,<br /> United Kingdom<br /> All rights reserved No part of this publication may be reproduced, stored in a retrieval system or<br /> transmitted in any form or by any means, electronic, mechanical, photocopying, recording,<br /> scanning or otherwise, except as permitted by the UK Copyright, Designs <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 1" href="http://viewer.zmags.com/publication/955c86ae?page=1"> </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 2" href="http://viewer.zmags.com/publication/955c86ae?page=2"> These materials are © 2020 John Wiley & Sons, Ltd</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 3" href="http://viewer.zmags.com/publication/955c86ae?page=3"> DSO CGI Special Edition by Rich Hampshir</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 4" href="http://viewer.zmags.com/publication/955c86ae?page=4"> DSO For Dummies®, CGI Special Edition Published</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 5" href="http://viewer.zmags.com/publication/955c86ae?page=5"> Publisher’s Acknowledgments For general informat</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 6" href="http://viewer.zmags.com/publication/955c86ae?page=6"> Introduction W elcome to DSO For</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 7" href="http://viewer.zmags.com/publication/955c86ae?page=7"> Foolish Assumptions In writing this book, I’ve m</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 8" href="http://viewer.zmags.com/publication/955c86ae?page=8"> This icon flags some of the more advanced bits th</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 9" href="http://viewer.zmags.com/publication/955c86ae?page=9"> IN THIS CHAPTER » Understanding the history of t</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 10" href="http://viewer.zmags.com/publication/955c86ae?page=10"> of GB Electricity Industry For Dummies, CGI Speci</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 11" href="http://viewer.zmags.com/publication/955c86ae?page=11"> » Environmental and social obligations: They cons</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 12" href="http://viewer.zmags.com/publication/955c86ae?page=12"> balancing and settlement process works out who us</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 13" href="http://viewer.zmags.com/publication/955c86ae?page=13"> The Electricity (Supply) Act 1926 established the</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 14" href="http://viewer.zmags.com/publication/955c86ae?page=14"> THE BEGINNING OF ELECTRICITY IN THE UK In 1881, </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 15" href="http://viewer.zmags.com/publication/955c86ae?page=15"> ethical walls between their distribution (the nat</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 16" href="http://viewer.zmags.com/publication/955c86ae?page=16"> 12 All of this change has two impacts: » The na</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 17" href="http://viewer.zmags.com/publication/955c86ae?page=17"> The European Union definition of a DSO originates</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 18" href="http://viewer.zmags.com/publication/955c86ae?page=18"> infrastructure. This pace of adoption is likely t</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 19" href="http://viewer.zmags.com/publication/955c86ae?page=19"> IN THIS CHAPTER » Grasping what the future o</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 20" href="http://viewer.zmags.com/publication/955c86ae?page=20"> In this section I examine the distribution networ</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 21" href="http://viewer.zmags.com/publication/955c86ae?page=21"> the voltage is reduced to 230V/400V for distribut</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 22" href="http://viewer.zmags.com/publication/955c86ae?page=22"> FIGURE 2-2: How to decipher an MPAN. The DNO cur</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 23" href="http://viewer.zmags.com/publication/955c86ae?page=23"> FIGURE 2-3: Distribution licence ownership. Und</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 24" href="http://viewer.zmags.com/publication/955c86ae?page=24"> However that’s all not as simple as it sounds. Th</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 25" href="http://viewer.zmags.com/publication/955c86ae?page=25"> access to data held by their distribution</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 26" href="http://viewer.zmags.com/publication/955c86ae?page=26"> IN THIS CHAPTER » Understanding why the transiti</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 27" href="http://viewer.zmags.com/publication/955c86ae?page=27"> This chapter looks at what’s driving DNOs to tran</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 28" href="http://viewer.zmags.com/publication/955c86ae?page=28"> European Parliament and of the Council of 5 June </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 29" href="http://viewer.zmags.com/publication/955c86ae?page=29"> 26 and affordability in the support of whole sys</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 30" href="http://viewer.zmags.com/publication/955c86ae?page=30"> Both definitions also touch on the DSO’s role in </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 31" href="http://viewer.zmags.com/publication/955c86ae?page=31"> FIGURE 3-1: Distribution network. </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 32" href="http://viewer.zmags.com/publication/955c86ae?page=32"> electricity can be delivered both sustain</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 33" href="http://viewer.zmags.com/publication/955c86ae?page=33"> CEER also noted in its ‘Position Paper on the Fut</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 34" href="http://viewer.zmags.com/publication/955c86ae?page=34"> The DSOs identify their lack of visibility of oth</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 35" href="http://viewer.zmags.com/publication/955c86ae?page=35"> The need to increasingly actively manage both the</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 36" href="http://viewer.zmags.com/publication/955c86ae?page=36"> energy costs, increasing overall costs or</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 37" href="http://viewer.zmags.com/publication/955c86ae?page=37"> (continued) Logistics companies come in for the d</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 38" href="http://viewer.zmags.com/publication/955c86ae?page=38"> » Identifying the changes happening to DSO </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 39" href="http://viewer.zmags.com/publication/955c86ae?page=39"> five-year price control review period, RIIO-ED2, </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 40" href="http://viewer.zmags.com/publication/955c86ae?page=40"> The ability to design networks that enable supply</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 41" href="http://viewer.zmags.com/publication/955c86ae?page=41"> And, as a DSO, planning will need to take into ac</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 42" href="http://viewer.zmags.com/publication/955c86ae?page=42"> The DSO needs to factor these implications into t</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 43" href="http://viewer.zmags.com/publication/955c86ae?page=43"> Flexible connections may also fall into system co</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 44" href="http://viewer.zmags.com/publication/955c86ae?page=44"> continues to operate safely and the quality of th</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 45" href="http://viewer.zmags.com/publication/955c86ae?page=45"> All of this leads to a need for much greater visi</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 46" href="http://viewer.zmags.com/publication/955c86ae?page=46"> has sufficient energy resources to continue to op</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 47" href="http://viewer.zmags.com/publication/955c86ae?page=47"> Flexibility Plan Progress Update of October 2018,</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 48" href="http://viewer.zmags.com/publication/955c86ae?page=48"> terms that you may hear when people start talking</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 49" href="http://viewer.zmags.com/publication/955c86ae?page=49"> think that the electricity retail market matches </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 50" href="http://viewer.zmags.com/publication/955c86ae?page=50"> Considering New Capabilities Although major soci</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 51" href="http://viewer.zmags.com/publication/955c86ae?page=51"> The change here is from investment timescale powe</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 52" href="http://viewer.zmags.com/publication/955c86ae?page=52"> Managing commercial arrangements A whole set of n</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 53" href="http://viewer.zmags.com/publication/955c86ae?page=53"> » Studying other countries’ electricity sec</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 54" href="http://viewer.zmags.com/publication/955c86ae?page=54"> Australian market structure Structurally, Austral</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 55" href="http://viewer.zmags.com/publication/955c86ae?page=55"> coordination between an independent market operat</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 56" href="http://viewer.zmags.com/publication/955c86ae?page=56"> California California provides some interesting </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 57" href="http://viewer.zmags.com/publication/955c86ae?page=57"> » Inconsistent cost-effectiveness calculation met</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 58" href="http://viewer.zmags.com/publication/955c86ae?page=58"> Both of these areas are very much on the radar in</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 59" href="http://viewer.zmags.com/publication/955c86ae?page=59"> » Consulting portals for guidance » Keeping an ey</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 60" href="http://viewer.zmags.com/publication/955c86ae?page=60"> The Energy Networks Association Open Networks Pro</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 61" href="http://viewer.zmags.com/publication/955c86ae?page=61"> Gridwise Architecture Council The Gridwise Archit</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 62" href="http://viewer.zmags.com/publication/955c86ae?page=62"> » Avoiding the same mistakes » Questioning everyt</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 63" href="http://viewer.zmags.com/publication/955c86ae?page=63"> Build on Others’ Experiences You can find a ton </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 64" href="http://viewer.zmags.com/publication/955c86ae?page=64"> The experience of others may stimulate some new t</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 65" href="http://viewer.zmags.com/publication/955c86ae?page=65"> Be Optimistic, Stay Realistic You probably have </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 66" href="http://viewer.zmags.com/publication/955c86ae?page=66"> And remember that a decision to do nothing isn’t </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 67" href="http://viewer.zmags.com/publication/955c86ae?page=67"> questions about the cost of flexibility to the DS</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 68" href="http://viewer.zmags.com/publication/955c86ae?page=68"> The British electricity system has ended up where</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 69" href="http://viewer.zmags.com/publication/955c86ae?page=69"> Glossary A&FLC: Ofgem’s Access and Forward-Loo</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 70" href="http://viewer.zmags.com/publication/955c86ae?page=70"> ED2: Electricity Distribution 2. The 2 refers to </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 71" href="http://viewer.zmags.com/publication/955c86ae?page=71"> SGAM: Smart Grid Architecture Model. SPEN: Scott</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 72" href="http://viewer.zmags.com/publication/955c86ae?page=72"> Notes These materials are © 2020 </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 73" href="http://viewer.zmags.com/publication/955c86ae?page=73"> Notes These materials are © 2020 </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 74" href="http://viewer.zmags.com/publication/955c86ae?page=74"> Notes These materials are © 2020 </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 75" href="http://viewer.zmags.com/publication/955c86ae?page=75"> Notes These materials are © 2020 </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 76" href="http://viewer.zmags.com/publication/955c86ae?page=76"> These materials are © 2020 John Wiley & Sons, Ltd</a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 77" href="http://viewer.zmags.com/publication/955c86ae?page=77"> </a> <a title="DSO For Dummies, CGI Special Edition_9781119421030 page 78" href="http://viewer.zmags.com/publication/955c86ae?page=78"> WILEY END USER LICENSE AGREEMENT Go to www.wiley.</a>