Electricity SO Reform

The System Operator (SO) has a key role in planning and operating the electricity system. The role has already grown over recent years.

Through our Integrated Transmission and Regulation (ITPR) project, we have already made changes to the SO’s role to support more integrated and efficient planning and delivery of transmission investment. The SO has also taken on the role of the Electricity Market Reform (EMR) delivery body.

We think further change is needed to:

  1. The SO’s roles, to ensure it is well placed to both respond to and facilitate the transformation of the electricity system. These changes include both new roles for the SO and clarifying our expectations of how it will undertake existing roles.
  2. The structure of the SO, to mitigate conflicts of interest. We are proposing further separation of the SO within National Grid Group, with a level of independence and transparency to make industry confident in its impartiality.

Publications and updates

  • Published: 14th Oct 2019
  • Decisions
  • 1 Associated documents
This letter sets out our consent for National Grid Electricity System Operator Limited (NGESO) to use IncPayRect, as specified in Special Condition 4C ( Balancing Services Activity Revenue Restriction on External Costs) of the Electricity Transmission...

  • Published: 24th Sep 2019
  • Open letters and correspondence
  • 1 Associated documents
Following on from our RIIO-2 Sector Specific Methodology Decision, this letter provides further clarification as to what we expect to see in the Electricity System Operator’s Early Competition Plan.

  • Published: 20th Sep 2019
  • Open letters and correspondence
  • 1 Associated documents
The Gas and Electricity Markets Authority is publishing a call for evidence to request stakeholders’ feedback on the ESO’s performance across all of its role areas from April 2019 to date.

  • Published: 28th Aug 2019
  • Closed: 25th Sep 2019
  • Consultations and responses
  • 2 Associated documents
We confirm our approach to the ESO’s RIIO-2 funding model, and launch further consultations on the financial methodology and incentives design.

  • Published: 9th Aug 2019
  • Decisions
  • 1 Associated documents
This letter sets out the Authority’s decision on the financial incentive value for the ESO for 2018-19.

  • Published: 9th Aug 2019
  • Decisions
  • 1 Associated documents
We are publishing our decision on modification of Special Condition 4C of the electricity transmission licence held by National Grid Electricity System Operator Limited.

  • Published: 28th Jun 2019
  • Reports and plans
  • 1 Associated documents
We are publishing the ESO Performance Panel’s end of year evaluation report on the Electricity System Operator’s performance for the 2018-2019 regulatory period.

  • Published: 26th Jun 2019
  • Closed: 24th Jul 2019
  • Consultations and responses
  • 3 Associated documents
The Gas and Electricity Markets Authority proposes to modify the special conditions of the electricity transmission licence held by National Grid Electricity System Operator Limited.

  • Published: 1st May 2019
  • Open letters and correspondence
  • 1 Associated documents
We have reviewed the ESO Forward Plan 2019-21 and the stakeholder responses the ESO received as part of its consultation and have provided our view of whether the Forward Plan meets our expectations. This letter outlines Ofgem’s Formal Opinion of the ESO...

  • Published: 12th Apr 2019
  • Open letters and correspondence
  • 2 Associated documents
A call for evidence asking for stakeholders feedback on the ESO’s performance during the 2018-2019 period, to inform the end of year incentives review.

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