Digitalisation Strategy and Action Plan

Intro and Executive Summary

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

We have established an ambitious business plan for the current RIIO-ED2 regulatory period that is built around seven keys to success in delivering on our customer and stakeholder priorities. Digital and data enabled technologies and capabilities are intrinsic in their delivery and everything we aim to achieve.

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.

Our digital aspirations

UK Power Networks aspires to be a leader in data and digital, within the energy industry and beyond. Our vision is to be a driving force, leading by example and motivating others. To deliver against this aspiration, we need to continually progress in all areas defined within our Digital Portfolio Framework. Whilst the framework is intended to remain stable for the years ahead, we expect the way we are set up to dynamically adapt with our experiences, new trends and the evolution of our customers’ and stakeholders’ needs.

The result is not only the direct delivery of new and improved products and services for our customers and stakeholders – providing choice, ease, convenience and satisfaction – but to also contribute to the overall advancement of the energy system, as well as other whole system vectors such as heat, transport, water and telecoms.

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.

Understanding and delivering for our 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 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.

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.

Collaborating across and beyond the energy sector

Beyond the engagement with our digital stakeholders, we consider collaboration in innovation projects, industry forums and initiatives to be instrumental in achieving collective success in meeting the prevailing demands being placed on us, our peers, customers and stakeholders.

In recognising ourselves as a component within a wider system of systems, our structured approach to digitalisation provides focus and meaning for our efforts in proactively playing our part in collaborative activities. We believe that by collaborating on the principles of , we will enable others to deliver and compete in a market which boosts efficiency of infrastructure systems and services. This level of engagement is necessary across all aspects of digitalisation and, as a result, we are and will remain actively engaged in a variety of collaborative activities.

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.