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NETWORK / 5 / MAY 2017 L E A D E R C O M M E N T "Rather than try to ght it, we shou ld be facilitating that transition. We're better placed than anyone else." So says UK Power Networks chief executive Basil Scarsella on the shi to microgrids – and the shi to a more ‚ exible power system generally (see interview, p15). Scarsella's view will be music to the ears of John Scott and the other leaders of the Future Power System Architecture project, who urge DNOs and the rest of the traditional energy industry to embrace and lead the change that is coming as the power system evolves (see p8). Scarsella is positioning UKPN rmly at the front of that change – and other DNOs will want to follow suit or risk being le behind, as Scott warns. But even if the DNOs get with the programme and defy the critics who believe them slow to change and wary of innovation, there will be challenges ahead. The rst is the policy and regulatory framework that will govern the new markets arising from a more complex power system. There's an undercurrent of con‚ ict between two schools of thought that will have to be resolved before the new structure is put in place. Do policymakers want new technologies such as demand-side response and storage to exist in a perfect market, where competition rules and there's a level playing eld for all entrants? Or do they want to give them every chance of developing, and developing quickly, by allowing regulated monopolies – networks – to take a leading role? The jury's out, and the government's response to the smart systems consultation, when it arrives, is unlikely to provide an answer. The second challenge is even more tricky. There's a lot of buzz around the shi to a DSO model – but little thinking as yet as to the business case for that model. Can DNOs make a decent return out of the new functions that come with being a DSO, and will that return, and its risk pro le, suit their current investors? Is the DSO model the most cost-e˜ ective, e™ cient and regrets-free solution to the power systems' challenges? It may well be – but the question needs to be asked. Time is short, with the new world order envisaged in the Future Power System Architecture project just 13 years away. Policy thinking is well under way, businesses are starting to manoeuvre for position, but serious questions remain. It will be up to government, a er the election, to take a leading role in answering them. Basil Scarsella will be one of many industry leaders on stage at this year's Utility Week Live at the Birmingham NEC from 23-24 May (p14-17). Network is hosting the Network Theatre, with a packed programme of seminars on power, gas and heat networks. Book your free tickets at utilityweeklive.co.uk C OMING SO ON ∙ RIIO2 • Cables • EV charging YOUR NET W ORK Give the people what they want Let us know what projects, technologies and topics you want us to cover Have your say Express your opinions and respond to content by blogging or writing for the magazine A social Network Follow us on Twitter: @Network_mag Email the editor: ellenbennett@fav-house.com Basil Scarsella will be one of many industry leaders on stage at this year's Utility Week Live at the Birmingham NEC from is hosting the Network Theatre, with a packed programme of seminars on power, gas and heat networks. Book your free tickets Ellen Bennett ellenbennett@fav-house.com