Data-Sharing Obligations of DSOs

Detailed Explanation with Case Laws

1. Introduction

Distribution System Operators (DSOs) operate local electricity networks and increasingly manage large amounts of digital information. This includes metering data, network capacity information, connection data, flexibility data, outage information and data about distributed energy resources.

Data-sharing obligations mean that DSOs cannot treat all network information as their private property. Where information is needed for network operation, competition, customer switching, flexibility markets, renewable generation or regulatory oversight, the law may require the DSO to make appropriate data available.

At the same time, sharing must respect privacy, cybersecurity and commercial confidentiality. The modern legal approach is therefore to achieve a balance between open and useful data and secure and lawful data management. (Eur-Lex)

2. Main Legal Basis in EU Law

A major legal foundation is Article 23 of Directive (EU) 2019/944 on common rules for the internal market for electricity.

It requires Member States to organise energy-data management so that data access and exchange are efficient and secure. It covers metering and consumption data and information required for customer switching, demand response and other energy services.

Eligible parties must receive relevant customer data on a non-discriminatory basis, and procedures for obtaining data should be easy to understand and publicly available. (Eur-Lex)

Article 24 further requires interoperability and transparent procedures for data access. Therefore, DSO data-sharing systems should not be designed in a way that creates unnecessary technical barriers for suppliers, aggregators, flexibility providers or consumers. (Eur-Lex)

3. Non-Discriminatory Data Sharing

One of the most important obligations is equal treatment.

A DSO should not give useful network information to one market participant while unnecessarily withholding the same information from its competitors. This is particularly important because DSOs have a natural-monopoly position in distribution networks.

The principle can be understood as:

Same relevant data + similarly situated users = generally comparable access conditions.

In Joined Cases C-128/03 and C-129/03, AEM, the Court of Justice explained the importance of non-discriminatory access in electricity markets. Although the case concerned network access rather than modern digital data-sharing, its principle is relevant: electricity-network rules must not create unjustified discriminatory treatment. (InfoCuria)

Similarly, Commission v Slovakia (C-264/09) concerned preferential access to electricity transmission infrastructure. The case demonstrates the wider EU principle that network operators cannot use their position to provide unjustified preferential treatment.

4. Consumer Data and Privacy

Data-sharing does not mean unlimited disclosure of consumer information.

Smart meters can generate detailed information about electricity consumption. Such information may reveal patterns about a household's activities. Therefore, personal data must be handled consistently with GDPR requirements.

Article 23 of Directive 2019/944 expressly requires personal-data processing under the Directive to comply with Regulation (EU) 2016/679 (GDPR). (Eur-Lex)

A DSO therefore needs appropriate rules concerning:

lawful access;

purpose limitation;

data minimisation;

security;

authentication;

retention;

authorised third-party access; and

consumer rights.

5. Confidentiality Obligation

There is an important counterbalance to openness.

Article 37 of Directive 2019/944 requires DSOs to preserve the confidentiality of commercially sensitive information obtained during their activities. They must also prevent information about their own activities that could give a commercial advantage from being disclosed in a discriminatory manner. (Eur-Lex)

Thus, the legal principle is not simply “share everything.” It is better described as:

Share what the market and system legitimately need, while protecting personal, security-sensitive and commercially confidential information.

6. UK Approach

In the UK, Ofgem has developed Data Best Practice (DBP) as part of the digitalisation of the energy system. Ofgem states that the guidance helps energy companies comply with data-related licence requirements and supports sharing data between different energy systems. (Ofgem)

Ofgem has also stated that electricity distribution licensees are subject to DBP requirements. The framework focuses on improving data accessibility, visibility, interoperability and responsible sharing. (Ofgem)

Ofgem's wider Data Sharing Infrastructure is intended to support secure exchange of information such as network asset and planning data and information needed for participation in flexibility markets. (Ofgem)

7. Important UK Case Law

In R (UK Power Networks (Operations) Ltd) v Gas and Electricity Markets Authority [2017] EWHC 1175 (Admin), the High Court considered a dispute involving a licensed DNO and connection arrangements. The case illustrates that DNOs operate within a detailed statutory and regulatory framework and that their decisions concerning network users can be subject to regulatory and judicial scrutiny. (BAILII)

Although it was not specifically a modern data-sharing case, it is useful for understanding the regulatory accountability of DNOs.

8. Practical Importance

Data-sharing obligations are increasingly important because electricity systems now contain:

rooftop solar;

batteries;

electric vehicles;

smart meters;

demand-response systems;

flexibility markets; and

distributed generation.

Without proper data sharing, a DSO may not know where flexibility is available or where network congestion is developing. Open and standardised data can therefore support better network planning, competition and efficient use of electricity infrastructure.

9. Conclusion

The data-sharing obligations of DSOs are based on three connected principles: access, fairness and protection. DSOs must make relevant data accessible where law and regulation require it, provide access on non-discriminatory terms, and support interoperability. At the same time, they must protect personal data, cybersecurity interests and commercially sensitive information.

For modern energy law, DSO data is therefore becoming part of regulated network infrastructure rather than merely an internal business resource. This makes data governance an important part of the legal framework for smart grids, flexibility markets and the wider digital energy transition. (Ofgem)