The proposed EU DSO entity: what is it and what's at stake?

In its proposed Recast Electricity Regulation,1 the Commission aims to create a new EU-level entity for distribution system operators (DSOs) to enhance cooperation between themselves and with transmission system operators (TSOs) on planning and operation of their power networks. As proposed, this new 'DSO entity' would have a significant impact - positive or negative - on further deployment and integration of renewables, growth of demand response, decisions on grid tariffs and connection charges for prosumers, and customer data protection and privacy.

Below, we pose questions and answers on the proposal, why people should care about it, and the potential issues and risks of creating a DSO entity along the lines of the proposal. We conclude with recommendations for how the proposal must be improved if the new DSO entity is to contribute towards a smarter, flexible energy system capable of integrating more renewables.