National Energy System Operator (NESO) licences and other impacted licences: statutory consultation

  • Upcoming
  • Open
  • Closed (awaiting decision)
  • Closed (with decision)

Publication date

Closed date

Industry sector

  • Distribution Network
  • Generation and Wholesale Market
  • Supply and Retail Market
  • Transmission Network

Licence type

  • Electricity Distribution Licence
  • Electricity Transmission Licence
  • Electricity Interconnector Licence
  • Electricity Supply Licence
  • Gas Transporter Licence
  • Electricity Generation Licence
  • Smart Meter Communication Licence

The Secretary of State for Energy Security and Net Zero proposes to grant (or treat as granted) an Electricity System Operator (ESO) and a Gas System Planner (GSP) licence, and to make modifications to the conditions of other licences.

The Department for Energy Security and Net Zero (DESNZ) and Office of Gas and Electricity Markets (Ofgem) (collectively referred to as “we”) are jointly issuing this statutory consultation. 

The reason for these proposals is to bring together the outputs of multiple non-statutory consultations on National Energy System Operator (NESO) which, when the company is created, will be designated as the Independent System Operator and Planner (ISOP) and hold an ESO and GSP licence. This includes the licences, new roles, financial design and incentives, and consequential changes to other licences.

We are also consulting on the Direction that the Secretary of State proposes that will cause National Grid Electricity System Operator Limited’s existing transmission licence to have effect as the ESO licence when NESO is designated as the ISOP.

We are also consulting on modifications to the following licences which will be impacted by the designation of the ISOP: 

  • Electricity Transmission Standard Licence Conditions 
  • National Grid Electricity Transmission plc’s Special Conditions 
  • Scottish Power Transmission Special Conditions 
  • Scottish Hydro Electric Transmission Special Conditions 
  • Electricity Generation Standard Licence Conditions 
  • Electricity Interconnector Standard Licence Conditions 
  • Electricity Supply Standard License Conditions
  • Electricity Distribution Standard Licence Conditions 
  • All Electricity Distribution Special Conditions (including additional changes to Scottish Hydro Distribution Special Conditions only) 
  • Smart Meter Communication Licence 
  • National Gas Transmission plc’s (NGT) Gas Transporter Licence (Part C) Special Conditions 
  • All other Gas Transporter Licence Special Conditions
  • Gas Transporter Standard Special Conditions (Part A) 
  • Gas Transporter Standard Licence Conditions

Update on 28 March 2024: Some of the annexes originally uploaded to our website had formatting issues. The correct versions have now been uploaded. This does not have any substantive effect on the modifications we are currently consulting on.

Respond name

Future System Operation

Respond email

Subsidiary documents