Energy Digitalisation Framework

The Clean Flexibility Roadmap, published in July 2025, set out a commitment for the Government to detail its vision for digitalisation. Now, the Government and Ofgem have delivered on this commitment with the publication of an Energy Digitalisation Framework.

The framework, “a vision for a coordinated and connected energy system”, is a clear endorsement of the benefits of digitalisation, which - the framework recognises - underpins the transition to a smarter, cleaner, and more flexible energy future by “enabling the system to be planned and operated more efficiently and adjusted in real time”. It defines digitalisation, the “end goal”, as “the process of transforming how the energy system operates - for consumers, industry and networks - by using technologies and data to efficiently manage an increasingly complex, flexible and decentralised system.”

At a high level, this framework is intended to outline the strategic coherence, transparency, and coordination required to support delivery across the energy system. More specifically, it details the priority outcomes that digitalisation must deliver, the underlying characteristics that guide the delivery of a digitalised system, and the data domains and governance that will enable this. 

The framework accepts that, whilst industry has made laudable progress on digitalisation, the absence of overarching coordination has led to overly siloed projects and a fragmented approach. Interoperability and data quality gaps have compounded this, alongside initiatives lacking interconnection and insufficient accountability and governance. As a result, the path towards full digitalisation has been costly, inefficient, and complex.

Summary

This framework is underpinned by five components:

1. Vision statement: The Government and Ofgem will lead a coordinated approach to digitalisation. They will define the roles and responsibilities between the Government, Ofgem, and the key delivery organisations, while providing the policy and technical framework for a coherent, coordinated, and connected digitalised system.

2. Objectives:

   1. Giving consumers greater control and choice in how they engage with the energy system.

   2. Delivering the UK’s decarbonisation goals cost-effectively while ensuring the system is secure and resilient during the transition.

   3. Driving economic growth and accelerating innovation and investment in the energy sector and beyond.

3. Delivery principles:

   1. Trusted and secure

   2. Interoperable

   3. Simple, accessible and user friendly

   4. Responsive and future proof

   5. Efficient and cost effective

   6. Innovative and competition driven

   7. Deliverable

4. Data domains

   1. ​​​​​​​Strategic direction and enforcement: DESNZ is the strategic policy owner for the Energy Digitalisation Framework; Ofgem’s role is focused on implementation and regulatory delivery, ensuring that digitalisation progresses in line with regulatory requirements.

   2. Domain coordinators: NESO – core energy system service domain; Elexon – metering data domain and behind the meter asset domain; RECCo – consumer domain.

   3. Enabling infrastructure: the Data Sharing Infrastructure and Consumer Consent Service.

5. Governance – the Government and Ofgem plan to take a phased approach over 2 to 3 years

   1. ​​​​​​​Phase 1 (near term): Introduces a more organised and coherent system built on the bodies already delivering digitalisation today. This will essentially fill in the governance gap before DESNZ consults on the digitalisation coordination function. DESNZ, Ofgem, and the domain coordinators will form the Digitalisation Delivery Group (DDG). A Digitalisation Board, sitting above the DDG and comprising Ofgem and DESNZ, will also be established. To ensure coordination between domain coordinators before the coordination function is in place, governance forums and working groups will be set up.

   2. Phase 2 (long term): Establishes the enduring governance framework and embeds a stable, coordinated system. This marks when the digitalisation coordination function will come into effect, building on the work of Phase 1 by escalating domain-level challenges. At this point, digital systems will operate as parts of a single federated architecture, underpinned by common accreditation, interoperable trust frameworks, and aligned technical and data standards. This is also the stage at which industry engagement will take place, conducted separately by each domain coordinator.

Next steps

• DESNZ and Ofgem will formalise the Digitalisation Delivery Group, ahead of establishing the formal Digitalisation Board in the coming months.

• NESO will develop the first draft of the architectural reference framework, working closely with RECCo and Elexon, to deliver this by the end of August 2026. Ofgem will then consult on this framework to ensure it meets requirements of the overall system.

• DESNZ will publish an energy smart data consultation later this year.

• DESNZ will publish an AI for Clean Energy Strategy in Autumn 2026.

• DESNZ will consult on the form, roles and responsibilities of the digitalisation coordination function by the end of 2026.

techUK view

It is heartening to see such clear recognition of the need for a strong digital foundation on which technologies such as AI can build on. The framework acknowledges real-time, high-quality, interoperable, and – crucially – accessible data as vital for digital tools and systems. The consumer benefits of a digitalised energy system, such as lower costs, increased consumer-led flexibility, faster grid connections, and improvements to asset monitoring, are made apparent in this framework.

techUK is delighted to see the Government’s commitment to a digitalisation coordination function, which members have been calling for, as well as more clarity on the Data Sharing Infrastructure. Industry would welcome further detail on how this will intersect with the Energy Smart Data Scheme, on which the Government is due to consult later this year.

As with the Clean Flexibility Roadmap and NESO Sector Digitalisation Plan, delivery is key. The fact the Government and Ofgem have already delivered on a key commitment with the publication of this framework is a positive sign that agreed timelines will be adhered to. Strong accountability from all those involved in reaching the “end goal” of digitalisation will determine how effectively and quickly this is accomplished.