Direction to NESO on licence conditions relating to electricity and gas network planning

Publication type:
Decision
Publication date:
Topic:
National Energy System Operator (NESO)

Direction relating to the Independent System Operator and Planner (ISOP) Licence Conditions C12 and C13 of the Electricity System Operator Licence and C8 of the Gas System Planner Licence.

Details

The Centralised Strategic Network Plan (CSNP) will provide an independent, coordinated, and long-term whole-system approach to planning the electricity and natural gas transmission networks, as well as hydrogen transport and storage networks across Great Britain (GB) to help meet the government’s net zero ambitions. The first CSNP is currently required to be published by 15 December 2028.

The CSNP will supersede NESO’s current electricity and gas network planning processes, including the Network Options Assessment (NOA), Electricity Ten Year Statement (ETYS), Gas Options Advice Document (GOAD), and Gas Network Capability Needs Report (GNCNR). The information that is provided in these planning documents will now be included in the CSNP. NESO have submitted a request for derogations against the requirements of the relevant Licence Conditions (LCs) relating to these plans. 

Outcome

We have approved this request. These derogations are granted on the basis that the Centralised Strategic Network Plan (CSNP) continues to be developed in line with current expected timeframes. 

We are currently retaining the relevant LCs as a contingency should there be any further significant delay to the CSNP programme. In such circumstances, or generally at its discretion, Ofgem may amend or revoke these derogations as needed, and provide further direction regarding the requirement for, and timing of, any transitional network plans. 

Any such direction would be issued sufficiently in advance of the date on which work would reasonably be expected to commence, after consulting the licensee.

In the longer term, we expect to remove the licence conditions associated with planning processes that are superseded by the CSNP.