{{ vm.autoCompleteLoadingText }}

Governance

The role of the DSO is to make sure a broader range of options are considered and used where they offer value for money to consumers.

Our responsibility

When considering how to manage a constraint on the network, the DSO first considers and assesses alternative flexibility-based solutions. 

This ‘flexibility first’ approach has the potential to create conflict between the roles of DNO and the DSO. Therefore, it’s really important for us to be clear about the division of responsibilities between DNO and DSO, particularly regarding the three DSO roles set out by Ofgem, our regulator. 

Through further engagement with our stakeholders and guidance from our Independent Panel, an updated version of our Guide to Governance was published in March 2025. This updated document sets out the progress we have made in developing governance structures to demonstrate the independence of the DSO from the rest of National Grid Energy Distribution, embedding functional separation from the rest of the business for greater stakeholder assurance.

This guide provides transparency to stakeholders on our DSO and DNO processes, and allows stakeholders to provide views on how we are managing perceived conflicts of interest in a meaningful way. The guide is reviewed by the DSO and DNO executive annually. We will seek views on relevant DSO/DNO interface issues through our programme of workshops and events throughout the year.

DSO's three core roles

The DSO has three core roles which were established by Ofgem. in a series of consultations and explained in their guidance published in 2023. 

Our DSO and DNO rules and commitments to each other are outlined in our new Functional Separation Arrangement document.

Core tasks

The DNO is responsible for performing five core tasks:

  1. New network: build new electricity infrastructure where needed

  2. Reliability and supply: keep the power flowing by operating and protecting our assets

  3. Maintain and repair: fix the network if equipment gets damaged or is faulty

  4. Connections: manage connecting customers to our network

  5. Customer and community: deliver on our social contract to deliver services for all customers, including the vulnerable

Our governance structure

Delivering our core DSO governance commitments

The establishment of an independent DSO Panel and a robust external assurance programme are key to meeting governance commitments for our functionally separate DSO. Our structure allows us to listen and act on advice and experience of the independent panel, the external assurance programme and the National Grid Energy Distribution Leadership Team  and our conflicts of interest processes ensure that we are able to work with the Distribution Network Operator (DNO) in a fair way that puts the needs of our stakeholders at the heard of what we do.

Further information

Would you like to find out more about our Governance processes or have a question for our panel? 

For transparency to our stakeholders, we publish all of our DSO Policies in our Publications Library.

Can’t find what you’re looking for?