Electricity System Operator incentives 2015/17: Initial Proposals

Publication date
28th October 2014
Closing date
25th November 2014
Policy area

This document sets out our initial proposals for a two year incentive scheme for the electricity System Operator (SO), to be put in place from 1 April 2015 to 31 March 2017. Under our proposals the incentives placed on the SO would be based on the existing framework.

The current incentive scheme provides a robust framework which protects the interests of consumers. It achieves this through the use of financial incentives which promote economic, efficient and coordinated action by the system operator.

Under the 2015-17 scheme we aim to secure targeted improvements to the existing framework. We want to use our learning from application of the current scheme to make improvements to some of the newer incentive arrangements which we put in place. We will also consider whether there is a need for increased  transparency of actions taken by the SO and the modelling used to set a scheme target.