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: 18th Dec 2018
  • Decisions
  • 1 Associated documents
This letter details the Authority’s direction to NGET to transfer the entire share capital of Elexon Limited (the BSCCo as referred to in the BSC) to NGESO.

  • Published: 15th Nov 2018
  • Open letters and correspondence
  • 1 Associated documents
See our open letter setting out changes proposed to the definition of “licensee's transmission system” in the standard conditions of all electricity transmission licences.

  • Published: 22nd Oct 2018
  • Reports and plans
  • 2 Associated documents
We are publishing the ESO Performance Panel’s mid-year report on the Electricity System Operator’s performance for the first 6 months of the year.

  • Published: 16th Oct 2018
  • Closed: 30th Nov 2018
  • Consultations and responses
  • 1 Associated documents
We would like your views on potential improvements to the Electricity System Operator (ESO) regulatory and incentives framework from April 2019.

  • Published: 14th Sep 2018
  • Open letters and correspondence
  • 1 Associated documents
We are asking stakeholders to submit evidence or feedback on the Electricity System Operator’s performance from April 2018 to date. 

  • Published: 4th Sep 2018
  • Decisions
  • 4 Associated documents
Consent to partially transfer electricity transmission licence held by National Grid Electricity Transmission Plc to National Grid Electricity System Operator

  • Published: 4th Sep 2018
  • Decisions
  • 1 Associated documents
ESO Separation - Decision to modify the standard conditions of all electricity transmission licences

  • Published: 23rd Aug 2018
  • Agendas, minutes and presentations
  • 2 Associated documents
We held a stakeholder workshop on 6 August 2018 to discuss Electricity System Operator’s RIIO-2 price control framework. We published slides and meeting note.

  • Published: 10th Aug 2018
  • Open letters and correspondence
  • 1 Associated documents
Notice of National Grid’s allowances for the costs of implementing Electricity System Operator Separation.

  • Published: 27th Jul 2018
  • Reports and plans
  • 1 Associated documents
This is a consultants’ report prepared by Reckon LLP for Ofgem providing an initial view on what a separate ESO price control framework could look like in 2021.

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