Distribution System Operation Incentive annual report: 2025 to 2026

A new Distribution System Operation (DSO) Output Delivery Incentive (ODI) was introduced as part of our RIIO-ED2 Final Determinations. The purpose of the DSO incentive is to drive licensees to more efficiently develop and use their network, taking into account flexible alternatives to network reinforcement. From 1 April 2024, Ofgem is required to publish a DSO Incentive Report by 30 September each year.  

This DSO Incentive Report for the reporting year 2025 to 2026 sets out the distribution network companies’ DSO Stakeholder Satisfaction Survey scores; the DSO Performance Panel scores; detailed performance panel feedback and the overall financial reward or penalty that each distribution network company will receive for the DSO incentive.