With the proliferation of residential and utility scale renewable generation, the deployment of smart meters, and the future adoption of electric vehicles and storage technologies, there is no doubt that electricity distribution networks are at the heart of the Smart Grid revolution. This, however, will require the traditional distribution network operator (DNO) to evolve into an engaged, flexible distribution system operator (DSO) in which network elements and participants (consumers, generators, and those that do both) are actively managed to fulfill technical, economic, and environmental objectives. Key to this evolution is the provision of a forward-looking regulatory framework in which innovation must be encouraged. This webinar will present and discuss the different mechanisms adopted in the last decade by the UK Office of Gas and Electricity Markets (Ofgem), arguably one of the most progressive regulatory authorities in the world, to support innovation among DNO's including the recent 500 million Low Carbon Networks Fund. The DSO vision in the UK and abroad, potential future roles, and the perceived challenges to ensure the corresponding transition will also be presented and discussed.