We have continued to effectively manage losses on our network by implementing our losses strategy. We have published the latest version of the strategy as part of our business plan for 2023-28 (see Annex 4.7).

Our over-arching vision for managing losses is to optimise whole system losses while facilitating net zero:

– Optimise. Fully integrating losses into asset management decision making and planning processes means that management of losses does not always mean minimising losses, but instead, optimising losses.

– Whole System. A whole system approach is imperative, where increasing distribution network losses to obtain a reduction in transmission losses and overall carbon emissions reduction is a positive outcome.

– Facilitating net zero. Through our transition to distribution system operation (DSO), we are committed to a flexibility first approach. The use of customer flexibility and smart solutions will often lead to an increase in network losses, as these solutions typically result in higher network utilisation. From a whole systems perspective this is the right outcome as this in turn unlocks wider decarbonisation at the lowest cost to customers. In turn, the carbon impact of network losses will diminish over time, as we facilitate increasing volumes of low carbon generation required for net zero.

Our losses strategy for 2023-28 has taken into account a wide range of stakeholder engagement, and has evolved to reflect the significant challenges and opportunities presented by decarbonisation, DSO, and the new data and technology improvements available through programmes such as our 2015-23 smart grid enablers programme and the national smart meter rollout. Our vision to optimise whole system losses whilst facilitating net zero embodies this evolution.

Click here for the latest version of our losses strategy