Electricity distribution price control ED2

Publication type:
Consultation
Publication date:
Closing date:
19 May 2026
Status:
Open
Topic:
Innovation,
Energy network price controls
Subtopic:
Strategic Innovation Fund

Updates to Strategic Innovation Fund governance to support ED2 until it ends in March 2028 and ensure alignment with RIIO-3.

Consultation description

We are seeking views on proposed updates to the Strategic Innovation Fund (SIF) Governance for Distribution Network Operators (DNOs) for the remainder of ED2.

The proposals will ensure the continued effective operation of SIF for the remaining two years of ED2. They will bring governance arrangements for DNOs into alignment with those already in place for RIIO-3. This will help to maintain consistency and provide clarity for the delivery of innovation projects.  

The consultation includes:

  • changes to project reporting and monitoring requirements
  • small increases to funding limits at the Discovery, Alpha and Beta stages
  • refinements to processes for Innovation Challenges and engagement with the Programmatic Approach

This follows the helpful feedback we received from DNOs at our webinar with them on 18 March 2026. 

Who should respond

  • Distribution Network Operators (DNOs)

How to respond

Submit your response by 19 May 2026 by emailing networks.innovation@ofgem.gov.uk, with the subject title ‘ED2 SIF Consultation Response [INSERT NAME]’ .