Member Article

Future Energy: 5 Steps to ‘speedy, digital DSOs’

Report describes steps needed to create a new generation of digital Distribution System Operators

A new research report conducted by the Vlerick Energy Centre and KPMG has highlighted how Distribution System Operators (DSO’s) can transform themselves into the ‘speedy, digital DSOs’ tomorrow’s energy landscape needs.

The study, titled ‘What every DSO should know about digital’ includes the results of interviews with leading European DSOs and provides 5 key insights into how to prepare your organisation to transform ‘digital’ into an opportunity:

1: Transformation of the DSO core business

Focusing on the core while adapting to digital trends means improved planning and operations of distribution networks beyond traditional measurement and control actions

2: New customer experience, new process, and IT evolution

The creation of an umbrella reference: a digital program could be key in aligning digital efforts across the company to gain an overarching view which helps transfer not only processes, but allows technology to evolve

3: Transformation means cultural change

Digital is a new way of thinking, a new way of working and that does not funcyion well in traditional organisations. As a consequence the organisation itself needs to evolve together with the people in it.

4: Reaching out to the entire energy ecosystem, including new players

Due to their legacy, DSO’s have traditionally focussed on relations with the regulator, rather than their customer. The regulators do represent the interests of customers, but DSOs also need to create a more direct link with their customers.

5: Data Governance

If DSOs move into a role as a data hub operator they will gain a lot of experience in opening up customer data to market parties. How available that data will be is a trade-off between customer data protection and market innovation that will be made by the legislator. The DSOs own data is another story – here the companies cn decide to either be more open, or less.

Stijn Viaene, professor of digital transformation at Vlerick Business School says,

“In the past the business model was all about energy production and suppliers. Now it’s about data and working in much closer collaboration with the end consumer. Cities are focusing on becoming smart and energy efficient. You need to become the data supplier of future energy models”.

Jorn De Neve, Partner KPMG Advisory & Head of the Energy Sector adds,

“We believe that DSOs will be key actors in a power sector that is subject to unprecedented changes and new trends. At KPMG, we are at the forefront of these new evolutions, so that we can help our clients navigate through the transformation successfully.”

This was posted in Bdaily's Members' News section by Ian Hawkings .