What is a DNO and what do they do?
What is a DNO?
For many UK businesses, energy bills are often viewed purely through the lens of suppliers and wholesale prices. However, a key part of the electricity system is the Distribution Network Operator (DNO). Understanding the role of a DNO can help businesses better manage costs, improve efficiency, and avoid unnecessary charges.
What does a DNO do?
A DNO is responsible for owning, operating, and maintaining the local electricity distribution network. This is the infrastructure that delivers power from the national grid to homes and businesses.
Unlike energy suppliers, DNOs do not sell electricity. Instead, they ensure that electricity is delivered safely and reliably to your site. If there is a power cut or a fault with the local network, it is the DNO -- not your supplier -- that resolves the issue.
Why do DNOs exist?
The UK electricity network is divided into regions, each managed by a licensed DNO. This structure exists to ensure the network is operated efficiently and maintained to a high standard, while avoiding duplication of infrastructure.
DNOs are regulated by Ofgem, which sets the framework for how they operate and how much they can charge for using their networks. These charges ultimately form part of your electricity invoice through network costs.
TCR banding and kVA capacity
In recent years, DNO-related charges have become more visible to businesses due to the Targeted Charging Review (TCR). This reform changed how certain network costs are recovered, moving away from usage-based charges to fixed charges based on a site’s capacity or agreed supply level.
For many non-half-hourly (NHH) customers, this means being placed into TCR bands, which determine the level of fixed network charges applied. For half-hourly (HH) customers, charges are often linked more directly to their agreed kVA capacity.
Your kVA capacity represents the maximum electrical load your site is allowed to draw from the network. If this is set too high, you may be overpaying in capacity charges. If it is too low, you risk exceeding your limit and incurring penalties or operational issues.
Reviewing both TCR banding and kVA capacity is therefore an important step in ensuring your energy costs are optimised.
DNO regions
Each DNO operates within a defined geographic area. The main DNOs in Great Britain include:
- UK Power Networks (London, South East, East of England)
- National Grid Electricity Distribution (Midlands, South West, South Wales)
- Northern Powergrid (North East, Yorkshire)
- Electricity North West (North West England)
- SP Energy Networks (Central & Southern Scotland, Merseyside, North Wales)
- Scottish and Southern Electricity Networks (Northern Scotland, Central Southern England)
Your DNO is determined by your location and cannot be changed, unlike your energy supplier.
When should you contact your DNO?
There are several situations where it may be necessary to engage with your DNO directly, including:
- Power outages or network faults
- New connections or site developments
- Increasing or reducing your site’s capacity (kVA)
- Metering or infrastructure changes impacting supply
For most day-to-day queries, your energy supplier will act as your first point of contact, but more technical or infrastructure-related requests will involve the DNO.
How we can help
Understanding the role of the DNO -- and how charges like TCR banding and capacity impact your bills -- can unlock significant cost-saving opportunities.
At SeeMore Energy, we help businesses review their energy setup in detail, identifying areas where network charges may be reduced and ensuring your contract and capacity are aligned with your actual usage.
Contact us today for a free energy review, and let us help you take control of your energy costs.
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