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NETWORK / 13 / MARCH 2018 nance packages are essential for market transformation. 3. The supply chain must have sufficient capacity to pro- mote sustainable growth. 4. Consumers need confidence that services, systems and devices form part of a struc- tured consumer journey. We need to navigate a critical path to electrification and decarbonisation. 5. DSR needs concurrent and planned development of regulation, technology and markets. 6. New and innovative ways of purchasing and providing energy services will emerge. Making progress within the passive consumer community Electrification by Design doesn't just talk about unitary technol- ogy groups or supply chain activities by sector but focuses on two very salient points: l Developing a flexible and optimised energy system requires all of the market actors to work together to develop holistic consumer propositions that attract the right technology mix and finance offers whilst main - taining the integrity of the balanced energy system right through the value chain. l The consumer is largely apathetic to energy generally which means the proposition should be based on a set of well-defined benefits that provide comfort, conveni - ence, lifestyle choices and affordability. The former point is best achieved through the crea - tion of regional structures that will deliver targeted strategies under-pinned by enhanced data analysis of the housing stock and energy system needs. Those strategies will bring together 'actors' e.g. energy service pro- viders, technology providers, lo- cal authorities and distribution system operators, utilising a range of 'enablers' e.g. finance, data analysis, taxation meas - of regulated regional energy authorities is the only way to put the energy challenge front and centre in terms of effective planning and delivery. Such an approach would prevent DSOs from being blind-sided by the activities in the market place ures and building regulations which will develop appropriate infrastructure and services for a region. This work is arguably already underway via the Local Enter - prise Partnership framework but we believe that the creation (many network operators would struggle to accurately predict the level of ambition or poten- tial for heat pumps in EVs in any given region), and facilitate the creation of new energy supply disruptors. The point about consumer apathy is a tougher challenge, however, we know that delivery of a targeted service will require a mix of demand side response measures, energy for services, technology for benefits, finance to cover costs and impartial advice to give comfort to the decision maker. Finance is important here. The unlocking of value in the flexibility market, and augmenting it with third party finance is critical to suc - cess, and again lends itself to the regional structure approach. The new market functions and principles that are dis - cussed in the report are not wholly owned by one sector or organisation, and value and opportunity are embedded for a cross section of market participants. Industry needs to work together with critical actors and establish delivery routes and ownership to identify and extract the value of system flexibility. We propose new roles and functions for energy retailers, device manufactur - ers, network operators, service providers and consumers. With appropriate regulation, incen- tives, engagement and market design the critical actors can creatively package the enablers to deliver the optimised flexible energy system. In the coming year we will be actively engaging with policy makers and industry peer groups to help deliver our new energy system. We will continue to work with the Energy Systems Catapult under our joint work - ing agreement to organise and host relevant seminars and workshops aimed at informing policy and facilitating relation- ship building across the indus- try. Throughout the first half of the year we will be publishing reports on a range of topics including flexibility, network charging, storage and heat. Actors and enablers in regional structures The flexible and value shared market