The network operators must be informed about the active demand programs envisioned by the aggregation functions and must validate them according to their own area of jurisdiction. But DSOs are both technical players and commercial buyers: they must also provide decisions to the value chain players which are fair and transparent, avoiding any conflict of interest.
A prototype distribution network management tool  has been developed and tested by the ADDRESS consortium which covers the DSO Medium Voltage Control level, the HV/MV substation level and the MV/LV substation level. The new functions of both the DSO Control Centre and the local controllers (HV/MV and MV/LV loads) improve significantly the capability of DSOs and TSOs in terms of:
Real time monitoring and control,
Technical validation of the active demand programs envisioned by the aggregation functions and composed of products traded in the day-ahead, intra-day or real time markets,
Load area interactions and, when relevant, coordination with TSOs, with the parent publication and updating of data (the flexibility tables which describe the allowed demand flexibility in the foreseen load areas where there is potential active demand) ,
Definition and publication of the flexibility tables where the allowed flexibility per load areas is used by aggregators
Assessment / settlement of active demand activities by providers
The technical validation by DSO of AD services is performed ex-ante, possibly in coordination with TSOs, based on non-discriminatory rules.
 The algorithms for DSO operations are described in deliverable D3.1