Electricity System Operator (ESO) regulation

Electricity System Operator (ESO) regulation

The Electricity System Operator (ESO) performs several important functions; from second-by-second balancing of electricity supply and demand, to developing markets and advising on network investments. The ESO has an important role to play in the UK’s transition to a decarbonised, decentralised and digitalised energy system.

The ESO will best deliver these responsibilities if it is proactive, forward-looking, and ambitious. The ESO must work closely with other industry parties and wider stakeholders to ensure there is a coordinated, whole system approach to solving energy system challenges and it must be agile and ready to adapt to emerging issues. 

Our regulatory framework for the ESO is designed to ensure that the ESO plays its part in delivering a reliable and resilient zero carbon energy system at the lowest cost to consumers. The framework comprises:

  • the ESO’s licence
  • the ESO price control (including the financial incentives scheme)
  • regular performance monitoring and reporting requirements.

You can view all policy publications, decisions, information and consultations relating to the ESO’s regulatory framework in the publications and updates list below.