An Independent Distribution Network Operator (IDNO) is any electricity distributor whose licences were granted after 1 October 2001.
What is the difference between an IDNO and a DNO?
There are 14 Distribution Network Operators (DNOs) in Great Britain. DNOs came into existence on 1 October 2001, evolving from ex-Public Electricity Suppliers. These companies have distribution services areas corresponding to the areas in which they were formally the incumbent. Within these areas they have certain licence obligations. IDNOs do not have distribution services areas.
Why are there IDNOs?
Changes to the Electricity Act 1989 by the Utilities Act 2000 introduced distribution as a separate activity requiring authorisation. We are responsible for granting licences authorising a person to distribute electricity for the purpose of giving a supply to any premises (a distribution licence) to any company fulfilling our criteria. IDNOs will own and operate electricity distribution networks which will predominately be network extensions connected to the existing distribution network, e.g. to serve new housing developments.
How many IDNOs are there?
Ofgem has issued six distribution licences to IDNOs:
• Energetics Electricity Limited
• ESP Electricity Limited
• Independent Power Networks Limited
• The Electricity Network Company Limited
• UK Power Networks (IDNO) Ltd
• Utility Assets Limited
How are IDNOs regulated?
IDNOs are regulated much like DNOs. However the IDNO licence does not have all the conditions of the DNO licence. Section B of the distribution licence is currently not switched on for IDNOs. However, IDNOs have a further section which contains specific financial ring fencing and price control conditions.
In August 2006 Ofgem consulted on the implication of licence applications from affiliates of existing distribution licensees. The conclusions reached are set out in decision letter 156/06 along with our updated position on the IDNO price control arrangements.
Page updated November 2011