Asset governance-a radically new way to manage distribution networks in a competitive and deregulated market

An innovative solution was required to meet the regulatory and competitive challenges faced by modern utility companies operating in the UK market. In this rapidly developing environment, it became essential to be able to make both performance and efficiency improvements, whilst seeking to extract as much value as possible from the use of the assets. In response to this challenge, the concept of asset governance was born. This paper considers the developments in the business environment, the responsibilities of the asset governor and describes how the resulting structure will deliver ongoing performance improvement. It also considers the relationships between asset owners, asset governors and asset managers in the competitive business environment, risk transfer and the challenges that lie ahead