Why digital investment isn't hitting the mark for regulated networks

Sam Chapman 11 Jun 2026
Energy Water Networks

UK networks are investing billions in digital and network modernisation, but success is no longer judged by intent.

Regulators are increasingly focused on evidence of delivery, with funding and incentives tied to outcomes within fixed five-year control periods.

Most organisations can point to extensive portfolios of digital initiatives. Far fewer can demonstrate how that activity translates into consistent operational or regulatory performance. This gap between activity and real-world benefit is increasingly how digital maturity is judged in practice. For senior leaders, it determines where confidence is genuinely earned and where it is merely assumed.

This article explores what that means, and the shifts in thinking that distinguish organisations able to translate digital investment into dependable delivery.

What we see across networks today

Across electricity, gas, water and multi-utility organisations, digital portfolios have expanded rapidly. What hasn’t kept pace are the delivery and assurance mechanisms used to govern that investment. Many of the structures still in place were designed for more predictable programmes of change, where delivery could be planned in discrete blocks and performance demonstrated retrospectively. As digital capability becomes central to operational delivery and regulatory outcomes, those structures are increasingly exposed.

This gap between investment and delivery confidence shows up most clearly in governance, operating models and evidence chains. 

Across networks, it typically manifests itself in four ways:

  • Delivery and assurance approaches that have not evolved at the same pace as digital investment
  • Fragmented decision rights, accountability and assurance across technology, operations and regulatory teams
  • Limited visibility of delivery confidence during regulatory periods
  • Boards and executives being asked to stand behind delivery outcomes without full visibility across technology, data and operations

At the same time, “digital” means different things to different parts of the organisation. Central teams tend to frame it around platforms and data, while operational, asset and regulatory teams experience it through availability, risk and compliance. Where these perspectives are not aligned, organisations struggle to act coherently. In practice, this leads to familiar patterns of uneven maturity, with pockets of success sitting alongside friction and constraint. Individual initiatives may deliver, but isolated progress does not translate into organisational success when outcomes depend on integration and sustained performance in business-as-usual.

Why digital activity doesn’t always translate into delivery

In many cases, digital delivery fails not because technology doesn’t work, but because the surrounding delivery system has not kept pace. Technology initiatives often progress faster than the organisational changes required to sustain them, with platforms and tools implemented ahead of improvements in data quality, governance, operating models and assurance. Even where delivery is technically successful, the conditions needed to realise benefits are often incomplete, typically when performance is tested under regulatory scrutiny.

Taken together, these issues point to a structural mismatch rather than a lack of effort. Most organisations are already working hard to deliver against their commitments. The challenge is that prevailing ways of planning, governing and assessing digital change were designed for more stable delivery environments, not for the scale, pace and scrutiny networks now face.

Organisations that consistently translate digital investment into delivery therefore behave differently. They make a small number of deliberate shifts in how they build confidence, allocate accountability, use insight and demonstrate control during delivery.

Shift 1: from planning confidence to delivery confidence

When delivery pressure increases, the instinctive response in many network organisations is to strengthen the plan. Roadmaps are refined, dependencies clarified, and sequencing adjusted. In regulated environments, this remains both rational and necessary. Clear plans sit at the heart of regulatory submissions and investment cases, and they increasingly commit investment ahead of realised demand.

The challenge is that planning and delivery confidence are not the same. Most networks already have credible strategies and detailed roadmaps. What those plans often don’t demonstrate is whether delivery will hold when assumptions are wrong, demand arrives unevenly, or trade-offs must be made in-period. As planning becomes more anticipatory, this gap matters more. Committing earlier and with less certainty increases exposure, and strong plans can create a false sense of assurance if delivery capability is untested. This reflects a structural constraint in regulated networks: organisations are required to commit delivery and innovation approaches early within five-year planning and funding cycles, with limited flexibility once commitments are set.

In that context, delivery confidence is built through how the organisation operates, not how the plan is written. 

It depends on:

  • Clear accountability for outcomes
  • Effective decision-making when reality diverges from intent
  • Early visibility of delivery risk
  • Assurance mechanisms that provide timely evidence of performance in business as usual

Networks that perform more consistently recognise this. They don’t replace planning but complement it with delivery systems that surface risk early and adapt course while maintaining regulatory defensibility. Delivery confidence is what makes anticipatory plans credible when conditions change.

Shift 2: from digital initiatives to accountable capabilities

Digital is often articulated as a portfolio of initiatives or programmes. Delivered successfully or not, those initiatives eventually close. What remains, and what the organisation experiences day to day, is capability. Digital maturity is not reflected in the number of initiatives delivered, but in the strength, durability and ownership of the operational capabilities they leave behind.

The distinction matters because initiative completion does not guarantee sustained performance. When an initiative ends, accountability for the resulting capability often becomes unclear. Without explicit ownership in business as usual, capabilities may be unevenly adopted, dependent on workarounds, or fragile under pressure. Assurance teams then struggle to form a coherent view of whether the capability is genuinely under control, even where delivery milestones were met.

Networks that perform more consistently make this explicit. They are clear about:

  • Which digital-enabled capabilities matter most
  • Who owns them
  • How success is measured
  • How performance is strengthened over time

That clarity extends through the full life of the capability, with named sponsors accountable from vision and implementation through to embedded performance in business as usual. They also recognise that capability maturity is rarely uniform. Variation within organisations is often greater than variation between them, and unless it is made visible, local success can be mistaken for organisational maturity. Delivery confidence is ultimately determined by capability performance, not project completion.

Shift 3: from maturity scores to decision-grade insight

As organisations try to understand how well placed they are to deliver, digital maturity is often reduced to a score, a benchmark, or a position on a framework. While these can provide a sense of orientation, they rarely change what leaders actually do. A score describes where an organisation sits. It does not explain where delivery risk is accumulating, which decisions matter now, or how confident leaders should be in what they are committing to next.

What is needed instead is insight that informs real decisions. That means understanding:

  • Where ambition is running ahead of delivery capability
  • Where intervention is required now rather than deferred
  • Where starting the next initiative would increase risk rather than reduce it
  • What should not yet be progressed 

Decisiongrade insight supports sequencing, tradeoffs and restraint, not just prioritisation.

This matters because delivery risk in regulated networks is rarely evenly distributed or static. It concentrates around particular capabilities, interfaces and handoffs, and it shifts as conditions change. Networks that manage this well treat maturity insight as an ongoing management tool, not a periodic assessment. They use it to direct attention, revisit assumptions and build delivery confidence over time, rather than to measure progress in the abstract.

Shift 4: from digital progress narratives to regulatory defensibility

In regulated networks, delivery is not judged by activity or visible progress alone. Value is realised when outcomes are clear, measurable and demonstrably aligned to ambition, and when organisations can evidence control during delivery, not just at the end of a control period.

Confidence is increasingly built inperiod, through the ability to demonstrate:

  • What is being delivered
  • How it is performing
  • Where risk sits
  • What action is being taken in response

As delivery becomes more complex, digital capability underpins that confidence. It provides the visibility, control and evidence needed to move beyond retrospective assurance and fragmented reporting. Where digital capability is weak, organisations rely on manual intervention and narrative explanations, limiting their ability to intervene early or provide credible assurance when performance drifts under scrutiny.

This distinction matters because progress can always be narrated, but it cannot always be defended. 

Dashboards and reports may describe what is happening, yet regulators increasingly test whether confidence is justified in practice. The gap between explaining delivery late and intervening early is where regulatory and delivery risk emerges. In this context, digital maturity is ultimately reflected in regulatory defensibility. It shows up in an organisation’s ability to evidence delivery in-period, act decisively when performance deviates, and maintain confidence that outcomes will be achieved, not just described.

Reframing digital maturity as a leadership discipline

Across regulated networks, digital maturity is often treated as something to be measured, assessed or demonstrated. Experience suggests something more fundamental. Maturity shows up in how confidently an organisation can deliver what it has committed to, how clearly it understands where risk sits, and how effectively it can evidence control as conditions change. In environments shaped by fixed control periods, long asset lifecycles and ongoing scrutiny, those capabilities matter more than any individual technology choice or initiative.

The shifts outlined in this article reflect how leading organisations are responding to that reality. They move beyond confidence derived from plans and programmes and instead focus on how delivery actually holds up in practice. They place accountability for capability at the centre, use maturity insight to inform real decisions rather than reassurance, and treat regulatory defensibility as something to be built continuously, not explained after the fact. These are not abstract principles. They directly shape how leaders sequence investment, intervene early and maintain confidence under pressure.

Seen this way, digital maturity is not a destination to be reached or a score to be claimed. It is an ongoing leadership discipline, shaped by how organisations plan, govern, assure and adapt delivery over time. Networks that approach it on those terms are better placed to deliver with confidence in environments that will only become more complex.

Assessing digital maturity in practice

For many networks, the challenge isn't a lack of digital investment. It's understanding whether the organisation has the governance, accountability, insight and assurance mechanisms needed to translate that investment into dependable delivery.

This is often where digital maturity assessments can help. They provide a structured view of where delivery confidence is strongest, where risk is accumulating, and where improvement efforts are likely to have the greatest impact.

At BFY, we work with regulated network organisations to assess digital maturity through the lens of operational performance, delivery confidence and regulatory outcomes. We help leadership teams understand where they are today, prioritise investment decisions and focus attention on the areas that matter most.

If you'd like to discuss any of the themes explored in this article, or learn more about how BFY supports digital maturity assessments, get in touch with our networks team below.

Networks

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Mark Hewett

Director

Mark leads transformational change for UK energy and utility companies. His mission is to accelerate their journey to Net Zero, delivering on the promise of the energy transition and creating value for their customers, shareholders, and society across the energy value chain.

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Chris Thoms

Client Director

Chris partners with clients to operationalise their business strategy into a coherent and optimised change portfolio, by leveraging best practice P3MO approaches and frameworks.

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Neal Edmondson

Client Director

Neal leads our Water Networks team with a focus on helping clients meet increased customer expectations and regulator requirements.

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Principal

As Principal at BFY, David leads client engagements on energy strategy, policy and commercial excellence, helping them to navigate a complex policy and regulatory landscape, capitalise on emerging opportunities in the energy transition and optimise their operating models for long-term success.

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Sam Chapman

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As a Manager at BFY, Sam partners with clients to deliver the strategic projects and transformational change required to operationalise their business strategy and support their journey to Net Zero.

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Connor Innes

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Connor leads on designing and delivering energy network innovation and flexibility projects, supporting the delivery of digital transformation with a focus on user needs and behaviour alongside end customer benefits.

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