Historically, the distribution network operators’ (DNOs) role and interaction with customers was mostly led by the need to manage outages. As we transition to a distribution system operator (DSO) and customers choose to interact with the network for other services, it is important to reconfigure our services to address the needs of all our customers.
It is fundamental for network services to be inclusive and fair, to make sure that no one is left behind as we transition to a net zero future. The increased uptake of low carbon technologies (LCTs) integrated into our network may result in early need of network reinforcement if flexibility can’t be procured from customer side due to exclusion. There is a need to increase our understanding of future vulnerability and disadvantage in a world that is transitioning to net zero. Currently no comprehensive customer segment mapping in this context is available and this gap is a limitation to networks’ ability to support vulnerable customers (VCs) in an effective way.
Objectives
The main output from the project will be a comprehensive understanding of future customer vulnerabilities and localised service needs. The implementation of a new range of services and solutions will result in an improved service that will be more inclusive, fairer and better suited to the needs of our future VCs and disadvantaged customers. This will support better access to the benefits associated with the net zero transition.
Learnings
Outcomes
The project has completed a systematic review of previous literature and research in the space of vulnerability and energy transition. This research was then included in a report and the insights were synthesised through a process of customer segmentation which was then presented for feedback to stakeholders in the industry. The feedback helped validate certain findings and dispute others and supported the creation of the consolidated version of the customer segmentation. A few outcomes from phase 1 and phase 2 can be described as:
1. Customer Segmentation Report – identified the different customer segments to understand what support customers who may be disadvantaged or in vulnerable circumstances might need through the Net Zero transition.
2. Socially Green Vulnerability Mapping Tool – developed a vulnerability mapping tool with over 40 vulnerability indicators at the Lower Super Output Area (LSOA) level across UK Power Networks licences. The tool will be used by UK Power Networks to support ED2 initiatives linked to vulnerability
3. Service Delivery Framework – identified a list of current and future vulnerability related services for UK Power Networks to consider delivering against to meet the transient nature of consumer vulnerability
4. Socially Green now using the outcomes (1-3) to inform the delivery of a Trial focused on hard-to-reach customers partaking in contractual flexibility services with UK Power Networks DSO.
During Phase 3, our goal is to discover and produce a social flexibility solution that will allow households in our regions that are hard to reach to participate in flexibility services.
Lessons Learnt
The findings from the project are supporting the identification of new services to support customers now and in future. The key findings are relevant to our vulnerability strategy including a better understanding of our customer base and future needs. Below highlights a few key lessons learnt from phase 1 and phase 2:
1. The transition to a net zero future will change DNO service offerings and the way they interact with customers, putting several groups at risk of being left behind
2. The current definition of vulnerability should be expanded towards ‘disadvantaged and excluded’ customers to address those at risk of being left behind
3. DNOs can improve their understanding of vulnerable, disadvantaged and excluded customers by assessing drivers and socio-demographic trends
4. A successful segmentation of potentially vulnerable, disadvantaged and excluded customers should also consider the barriers to participation created by the energy system
5. Technology and innovation should focus on customer-centric solutions to prevent exclusion, as opposed to inadvertently driving it
6. DNO’s should look at improving how they support social infrastructure by shifting from reactive intervention of vulnerability towards proactive prevention
