Decision on the Electricity System Operator regulatory and incentives framework for 2019-20

Publication date
25th March 2019
Information types
Policy areas

In April 2018, we introduced a new regulatory and incentives framework for the Electricity System Operator (ESO). We have started reviewing the effectiveness of this scheme in light of practical experience and we published consultations in October and February to explore where improvements could be made.

We have reviewed the responses we received and have set out the changes we’re making to the regulatory and incentives framework for 2019-20 in our decision letter below. We have made a number of modifications to the ESO roles and principles guidance document and the ESO reporting and incentives (ESORI) guidance document to implement these changes. These guidance documents are also published below.

The lessons we learn from implementing this will inform the development of a consolidated price control for the ESO under the RIIO-2 framework from April 2021 onwards.