SIF Governance Updates for DNOs, Closes 19 May 2026
Summary
Ofgem has opened a consultation on proposed updates to the Strategic Innovation Fund (SIF) governance for Distribution Network Operators (DNOs) for the remainder of the ED2 price control period ending March 2028. The proposals include changes to project reporting and monitoring requirements, small increases to funding limits at the Discovery, Alpha and Beta stages, and refinements to Innovation Challenge processes. The consultation closes on 19 May 2026, with responses to be submitted via email.
“We are seeking views on proposed updates to the Strategic Innovation Fund (SIF) Governance for Distribution Network Operators (DNOs) for the remainder of ED2.”
DNOs with active or planned SIF projects should review the tracked-changes document to assess how the revised funding limits at Discovery, Alpha, and Beta stages affect their project budgets. The alignment of DNO governance with RIIO-3 arrangements suggests a harmonisation of innovation fund administration that may simplify cross-network collaboration on innovation challenges.
What changed
Ofgem is consulting on substantive updates to SIF governance for DNOs during the final two years of the ED2 price control. The proposed changes include modified project reporting and monitoring requirements, small increases to funding limits at the Discovery, Alpha and Beta stages, and refinements to Innovation Challenge processes and Programmatic Approach engagement. These updates would align DNO governance arrangements with those already in place for RIIO-3.
DNOs are the primary affected parties and should review the tracked-changes document to understand the specific modifications to governance arrangements. Those with active or planned SIF projects should assess the impact of revised funding limits and reporting obligations before the 19 May 2026 consultation close date.
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Apr 21, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Electricity distribution price control ED2
Publication type: Consultation Publication date:
21 April 2026
Closing date: 19 May 2026 Status: Open Topic: Innovation, Energy network price controls Subtopic: Strategic Innovation Fund Get emails about this page Print this page
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- Updates to Strategic Innovation Fund governance to support ED2 until it ends in March 2028 and ensure alignment with RIIO-3.
Consultation description
We are seeking views on proposed updates to the Strategic Innovation Fund (SIF) Governance for Distribution Network Operators (DNOs) for the remainder of ED2.
The proposals will ensure the continued effective operation of SIF for the remaining two years of ED2. They will bring governance arrangements for DNOs into alignment with those already in place for RIIO-3. This will help to maintain consistency and provide clarity for the delivery of innovation projects.
The consultation includes:
- changes to project reporting and monitoring requirements
- small increases to funding limits at the Discovery, Alpha and Beta stages
- refinements to processes for Innovation Challenges and engagement with the Programmatic Approach This follows the helpful feedback we received from DNOs at our webinar with them on 18 March 2026.
Who should respond
- Distribution Network Operators (DNOs)
How to respond
Submit your response by 19 May 2026 by emailing networks.innovation@ofgem.gov.uk, with the subject title ‘ED2 SIF Consultation Response [INSERT NAME]’ .
Consultation documents
ED2 SIF Governance [PDF, 665.42KB] ED2 SIF Governance tracked changes [PDF, 742.86KB] Get emails about this page Print this page
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