Amendments to the ownership unbundling requirements of the Gas Act 1986 and the Electricity Act 1989
Correspondence and other
Publication date
Industry sector
- Offshore Transmission Network
- Transmission Network
This open letter is issued jointly by the Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem.
European legislation prohibits transmission system operators (TSOs) from owning or controlling assets for the production or supply of energy, or being controlled by persons that own or control such interests. This is known as ‘unbundling’. The aim of this is to avoid conflicts of interest, the potential for discrimination among network users and uncompetitive behaviour. Ofgem, as National Regulatory Authority, has to certify that GB TSOs comply with the unbundling requirements. Proposed certification decisions must be considered by the Commission and their opinion taken into account by Ofgem in the final decision.
The purpose of this letter is to inform you of a forthcoming amendment to the GB legislation that implements the unbundling requirements that is required to be made by the Commission and what this means for currently certified GB TSOs. We are considering transitional arrangements to manage the impact, as well as guidance for stakeholders to understand implications for existing and future certifications.