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Utility Week research ambitions to make the customer their num- ber one priority, they have a low enthusi- asm for facilitating customers' participation in value-added demand-side services. This shows they are perhaps not pursuing all the tools available to achieve that aim." The lowest priority for both DNOs and GDNs in 2014-23 was, somewhat surprisingly, managing the transition to a low-carbon energy sector. Power distributors ranked this between fourth and fih priority out of five, while gas distributors ranked this between third and fourth priority out of four. Liam Lidstone, strategy manager, ETI, commented: "It is interesting to see the response to the priority of low-carbon transi- tion. In a way this is partly understandable because of the long timescales involved in any transition and why the focus priorities are around customer service and load man- agement issues. "We would, though, argue that there is a need to start preparations. That involves work to understand what solutions work for given locations and given networks. This is because continued delays will add to the challenge that needs to be overcome. Actions may not be needed now, but the process cer- tainly needs to begin." tions/internal arrangements to streamline the timely delivery and cost effectiveness of connections. Hopefully this signifies roughly equal priority will go to each area and that the very mediocre priority scores are a result of such significance being attached to improving overall customer service, rather than simply a lukewarm appetite for making specific aspects of the connections process better. Opportunities to 2023 Utility Week and Tata Consultancy Services asked energy network companies about their business priorities for the next decade. DNOs were unanimous in ranking cus- tomer service as their number one priority. Understandably, GDNs put business-as- usual – safe, reliable and cost effective oper- ation of the network – as their top priority, but customer service came in a clear second. This suggests RIIO's consumer focus is driving business behaviours in a real way. Energy Networks Association chief execu- tive David Smith said: "Through the new RIIO framework, network companies have put present and future customers at the heart of their plans through widespread stakeholder engagement to determine con- sumer priorities. This engagement has led to clear outputs that will be delivered over the course of the first price controls." It will be interesting to see as the dec- ade unfolds exactly how this commitment to customer service plays out. More specifi- cally, whether networks will essentially look – albeit very constructively – to tick boxes on the likes of customer satisfaction with network services or whether the proactive consumer engagement philosophy that RIIO preaches is carried through in delivery. Both DNOs and GDNs (gas distribution network operators) attached low priority to developing non-regulated business to pro- vide value-added services. DNOs had the least interest, with 83 per cent stating they had no plans of this nature, compared with 67 per cent of GDNs. The director of the Combined Heat & Power Association, Tim Rotheray, comments: "This research shows that while DNOs have expert view from tcs: customer segmentation Although DNOs recognise the customer at the heart of the plan, there is more work expected from them to get into under- standing and segmenting customers. Social media and big data can potentially start contributing in the customer satisfac- tion space a lot more than DNOs consider now. For example, the awareness of an upcoming popular event in their command area could make a DNO more prepared and avoid any small outage leading to signifi- cant loss of customer experience. expert view from tcs: streamlining of the connection process DNOs need to streamline the connections process. This requires greater coordination and visibility among multiple departments such as asset management, network operations, connections services, future networks and back office to deliver higher customer satisfac- tion and Guaranteed Standards of Performance. Scalability will be another key challenge for DNOs where they will have to open up capacity for new connections driven by renewable generation at all voltage levels and low carbon technology loads. Addressing these challenges will bring significant opportunity for those DNOs who can contest large customer connections that would naturally fall to other DNOs. custOmeR seRVIce Is the numbeR One pRIORIty fOR dnOs What will be your company's priority for the next ten years (2014-23)? Customer service Effective load management through demand response and integrating embedded generation Smart grid solutions for improved grid operations, distribution management Non-regulated business for value-added services Managing the transition to a low-carbon energy sector 1.0 2.5 2.7 4.3 4.5 Average ranking 100% 67% 17% 17% 67% 33% 17% 33% 50% 50% 50% Ranked 1st Ranked 2nd Ranked 3rd Ranked 4th Ranked 5th few dnOs plan tO OffeR Value-added seRVIces mORe gdns than dnOs plan tO OffeR Value-added seRVIces Does your DNO business plan to offer value-added services as a non-regulated business? Does your GDN business plan to offer value-added services as a non-regulated business specific to gas distribution? No, 83% Yes, 17% Yes, 33% No, 67% 10 | 17th - 23rd OctOber 2014 | UtILItY WeeK