Electricity System Operator Incentives: Incentives from 2015

Publication date
17th June 2014
Closing date
15th July 2014
Policy areas

This document sets out our proposals on the development of future incentive schemes for the electricity system operator. We propose a two year incentive scheme to be put in place from 1 April 2015 to 31 March 2017. Under our proposals the incentives placed on the Electricity System Operator 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.