Switching millions of homes to low-carbon heating is essential for meeting the UK’s climate goals and creating a healthier planet, yet progress remains too slow. Heat pumps and energy efficiency improvements depend on local electricity networks, making DNOs an important, but often overlooked, part of the transition. With the next regulatory period for electricity networks (RIIO-ED3) on the horizon and decisions due on what will replace the now scrapped Energy Company Obligation in 2026, this is a useful moment to examine the role networks could play.

There is emerging interest across government and industry in whether DNOs could support planning, coordinating or even financing home upgrades. But views are mixed and the debate is still at an early stage. Through this project, we aim to bring clarity and evidence to the question of whether giving DNOs a broader role would help deliver clean heat faster, more affordably and more fairly for households.

Our goal is to assess whether an expanded role for DNOs could support a faster, more efficient and coordinated transition to low-carbon heat. We are examining how DNO involvement might reduce costs, improve planning, enable better coordination between local and national actors, and help overcome existing barriers to home decarbonisation. The findings will guide policymakers and industry on whether, when and how DNOs should take on new responsibilities.

Despite recent progress, the rollout of low-carbon heat is not happening at the pace needed to meet emissions targets. Households face high upfront costs, confusing user journeys and limited support. Meanwhile, the wider system struggles with fragmented responsibilities, stop–start funding cycles and poor coordination between national, regional and local actors.

DNOs already play a central role in enabling electrified heat by maintaining local electricity networks, providing connections and planning for future demand. As electrification accelerates, they are increasingly affected by how and where clean heat technologies are installed. This has prompted debate about whether DNOs should take on a bigger role - for example in planning heat rollouts, coordinating upgrades, supporting consumers or financing home improvements.

However, the evidence is currently limited. We want to understand whether involving DNOs more directly would meaningfully address existing barriers, and whether such a shift would improve outcomes for households.

We are carrying out a two-phase research programme to understand the range of roles DNOs could play in the heat transition, and the benefits, risks and trade-offs of each.

Phase 1 (autumn-winter 2025)

This focuses on mapping the potential roles DNOs could take on. This includes desk research, evidence review and interviews with DNOs, regulators, local authorities and industry experts. The findings will be published as a short position piece in early 2026. We are working with Baringa on this phase of work. 

Phase 2 (from early 2026)

This will build on these findings and may include modelling, further qualitative research or deeper analysis of regulatory options. 

Our aim is to generate independent, practical evidence that can support sound policymaking at a critical moment for both the Warm Homes Plan and the RIIO-ED3 process.