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NETWORK / 8 / OCTOBER 2017 T he conversation continues. Consultation will be ongoing in terms of the structure of the RIIO-2 price control, and regulator Ofgem has said it has already had "many and varied" responses to an open letter to networks on RIIO-2 it issued in July. "We are clearly going through a very big transition," said Jonathan Brearley, senior partner, networks, at Ofgem. Brearley says it is too early to comment on the content of RIIO-2 What role will new RIIO play? The consultation on the structure of RIIO-2 is continuing, as Ofgem and the networks discuss the future of the price control. But what is it likely to mean for DNOs from a technological standpoint? submissions in response to Ofgem's open letter; there will be a further period of con- sultation with networks in early 2018. The transition Brearley highlights is seeing greater than ever levels of distributed generation coming onto the system. "If you were to imagine a future in which there were massive levels of EVs and storage, that leads to a very different pattern of genera- tion and consumption, and a very different kind of network to one where generation is much more centralised. "As part of RIIO-2, we are thinking about these changes, and giving investors the certainty they need." The key drivers for RIIO-2 include the transition from DNO to DSO, and the man- ner in which the new DSOs can develop new business models that will enable them to fully exploit opportunities around flex- ibility and distributed energy resources "for the benefit of the whole power system", said Dave Openshaw, director of Millhouse Power. "This could generate legitimate new revenue streams from new markets by DSOs providing a range of system services – bal- ancing, reactive power, operating reserve, frequency response – to the system operator and other actors, for example, as well as helping alleviate distribution network constraints." Openshaw says that the displacement of central synchronous generation by renewa- bles has consequences for system balancing and stability. "Lower and more variable system strength leads to challenges around rate of change of frequency, transmission back-up protection co-ordination, and power quality, such as voltage dips and harmonic resonance." Networks of the future could include "energy communities" in which EV users