Digitalisation Strategy and Action Plan

Intro and Executive Summary

UK Power Networks has set a clear intention to maintain our position as the best performing network company in Great Britain against a backdrop of transformative change in the energy system and across society as we decarbonise every aspect of our economy.

We have made significant progress in implementing our ambitious business plan and have been thoughtful about how our Digitalisation Strategy should evolve given external changes. We are committed to maintaining our position as a leader in digitalisation and application of AI, incorporating changing customer needs and preferences, and proactively engaging with our stakeholders to ensure that our Digitalisation Strategy continues to develop appropriately in response to ever-changing needs.

Delivering against our digital aspirations

We are committed not only to offering enhanced products and services that bring choice, ease of use, convenience, and satisfaction to our customers and stakeholders, but also to contributing to the overall progress of the energy system. During the early years of RIIO-ED2, we have achieved notable advancements across our Digital Portfolio Framework, including:

• Our pioneering AI Strategy outlines the guidelines and principles for safely and securely exploring and adopting this emerging technology to deliver maximum benefits to our customers.
• A cloud migration initiative has modernised our IT infrastructure with the adoption of Microsoft’s Azure cloud platform and the application of cloud-first principles for new solutions, including the development of our Enterprise Data Platform.
• Enhanced Cyber Resilience – We are rapidly advancing our cyber security capabilities to protect critical systems and infrastructure from evolving threats.
• Mobile enablement of our field-based workforce ensures that digital tools for work management and data capture provide a seamless, intuitive experience.
• Innovative development of leading smart grid capabilities, such as Forecasting, Flexible Connections, Flexibility, and Active Network Management, which enable us to be cost efficient as we free up capacity on our network.

The digital energy environment

The extent and pace of change currently affecting the energy sector is unprecedented. That is both challenging and exciting, demanding us to respond in a manner that ensures that we realise the full range of opportunities presented. To achieve this, it is of the utmost importance that we understand the key influencing factors that we need to respond to. Set out below is a summary of what we recognise as these influencing factors, which have informed the shaping of our strategy and digital framework:

• DSO, Whole System and Net Zero – The development of digitally enabled, data-driven capabilities that allow infrastructure systems to share data and communicate in a common language to maximise performance.
• Rising Customer Expectations – Trends in digitalisation, digital services and data are driving rapid change across the whole of society and our economy.
• Digital Literacy – Requires us to develop and extend the capabilities of our people and embed cultural change.
• Open Innovation – The principle of presumed open establishes the need for energy sector participants to openly publish and share network and asset data.
• Cost Reduction – There is constant demand to deliver new and improved services that are cheaper, faster, greener and better.
• Artificial Intelligence – AI-powered solutions allow us to process and analyse vast amounts of complex data with greater speed and accuracy, predict trends, and support better decision-making across the business.

Our approach to digitalisation

Digital is often misinterpreted as only relating to information technology. Whilst that is of course an important component of digitalisation, we are clear that it is only a part of the equation. This is why our digitalisation strategy focuses on:

• People and Process – For digitalisation to be effective, we need to develop our people to foster their skills and capabilities. Equally, definition and implementation of effective and efficient processes ensures we provide flexible delivery, consistent service and reduced costs.
• Technology – The efficient and effective delivery and support of contemporary information technologies and systems, as well as user tools and devices, to facilitate leading digital products, services and solutions.
• Data and Information – Data is the lifeblood for any digital system and the communication medium by which people and machines interact, requiring interoperability to recognise, manage and exploit data as an asset.

Delivering enhanced services and experiences for stakeholders

We aim to gain a comprehensive understanding of the needs of our various stakeholders through proactive consultation across key groups, using insights to inform the shaping and prioritisation of our digital action plans. Our thoughts on the shape and direction of this are continually iterated and refined as we have worked to ensure our consultation and engagement activity is reflected in this strategy.

The way in which we engage takes on various forms to ensure we maximise coverage and penetration in recognition of the fact that there is not a one-size fits all approach. We hold a range of engagement forums which target direct dialogue and debate with stakeholders on a range of topics, seeking their views, input and challenge to inform, evaluate and drive our thinking and action. This includes those within the energy industry, throughout the wider utilities sector and beyond.

How we will deliver for our stakeholders

We have developed a robust process to deliver enhanced Services and Experiences for our stakeholders, across four portfolios of “Customer Facing Solutions,” “Employee Solutions,” “Asset and Operations,” and “Smart Networks.” Each of these portfolios is designed to enhance services and experiences for stakeholders.

We’ve also articulated a comprehensive set of targeted outcomes, which are aligned with the seven keys to success defined in our RIIO-ED2 business plan:

1. Delivering excellent service by staying in tune with customer needs and expectations.
2. Facilitating decarbonisation at the lowest cost by maximising the use of better data and smart technologies.
3. Investing to maintain a safe, reliable and resilient network through responsible stewardship of our network and investing for long-term growth.
4. Delivering the lowest possible bills whilst enabling Net Zero through efficiency and innovation.
5. Being a force for good in the communities we serve by protecting the environment and enhancing the communities we serve.
6. Being an employer of choice by nurturing a diverse, skilled, and motivated workforce.
7. Being a company that is worthy of your trust with high standards of conduct and transparency for our customers.

Digital governance

To deliver all aspects of our Digital Portfolio Framework, we must successfully collate disparate needs and use them to inform the development of products and services which provide value to the end user. This is a complex undertaking but something that we pride ourselves on at UK Power Networks. A fundamental aspect of making sure this happens in a sustainable, repeatable way is our approach to governance.

We have an integrated governance forum to oversee strategic delivery of digitalisation initiatives, with individual digital portfolios coordinated by specialised project forums. This seeks to better integrate digitalisation with our business-as-usual processes. A quorum of senior business leaders responsible for the areas of people, process, technology and data will attend, with participation from a broader community of business subject matter experts where required. The scope of this integrated governance approach will continue to be coordination, enablement and control of our digital portfolio, interfacing with other governance functions throughout the business as appropriate.

Tackling digital exclusion

Our RIIO-ED2 Digitalisation Strategy continues to be built around digital inclusion. Our intention is that digitalisation does not exclude any customers, stakeholders, or employees. Rather digitalisation is a platform we can use to better serve both digital and non-digital customers. We have built our plan around the following priorities:

• Maintain and enhance our existing channels: We will be offering enhanced channels for customers, stakeholders, and employees who are digitally capable to work better and more efficiently, whilst maintaining the existing channels for those who cannot.
• Ensure that new technology supports digital and non-digital users: Our governance will ensure that any solutions we develop will not be to the detriment of non-digital users. We will endeavour to provide alternative non-digital channels wherever possible.
• Build digital platforms to better manage and engage with vulnerable customers: We intend to use digitalisation as a catalyst for better management and engagement of vulnerable customers.