ELECTRICITY PRICING AND SECTOR REFORM: Distribution utility skills and capacities

02 Apr 2025

The paper summarises the envisaged ringfenced functions with skills of the future electricity distribution business, categorised into Distribution System Operator (DSO), Network Service Provider (NSP), Retail Service Provider (RSP) and Distribution Energy Trader (DET) functions. In practice, depending on the strategic intent and operational arrangements of a particular Disco, some of these functions may be simplified and/or combined, where permissible from a regulatory perspective, or outsourced to another Disco or service provider. The phasing in of the market will have an impact on both the scope and immediacy of the requirement for resource capacity and capability. In the existing Discos, at least some of the baseline skills are currently available, and those Discos that are actively preparing for the market are likely to have made some progress in initiating preparation for the supplementing of existing skills to cater for specific market skills requirements. For Discos to progress in the development of a future skills strategy, associated action plans and a training needs assessment would need to be unpacked at a further level of detail. Discos would have to strategise and prepare to be ready to have the requisite skills to take part in the market.