DNO vs ENO
What is a DNO and ENO?
In our 24 years’ experience, we have found there is often initial confusion from our prospective clients in who they would be seeking compensation from. A lot of people assume we would be entering negotiations on their behalf with their Energy Network Operators (ENOs). In other words, the companies they pay their bills to, companies like British Gas, Eon etc.
In actual fact, we seek compensation from the Distribution Network Operators (DNOs). These licensed companies own the electricity equipment, the poles, pylons and cables you receive your electricity through. It is the electrical equipment within your property boundary that the Electricity Act 1989 allows for you to be compensated for.
Here is a guide to help you identify the difference between a Distribution Network Operator and an Energy Network Operator:
National Grid are the company mainly responsible for ‘electricity transmission’, the bulk movement of electrical energy from a generating site such as a power plant, to a substation. This is done using very high voltage pylons across the UK. From there, the regional DNOs then distribute the electricity
Distribution Network Operators (DNOs)
Distribution Network Operators are responsible for delivering electricity to residential and commercial properties throughout the UK. They deliver electricity using a complex network (made up of powerlines, underground cables, substations etc.) and are responsible for the maintenance and upgrading of this network. There are 14 different district networks and these networks are split across 6 DNOs. Below is a map of the DNOs and where they operate.
Electricity Network Operators (ENOs)
Electricity Network Operators are companies who buy electricity in the wholesale market and then sell the electricity on to customers. They usually do not own or operate electrical equipment and are regulated by their regional DNOs. Your ENO will calculate your bill by how much electricity you use and the tariff you are on, a percentage of which will go back to the DNO. Currently, about 16% of household bills go to your DNO in order to maintain and upgrade electricity equipment. The majority of the energy market is made up of the ‘Big Six’: British Gas, EDF Energy, E.ON, npower, Scottish Power and SSE.