Future arrangements for the electricity System Operator: the regulatory and incentives framework

Publication date
7th February 2017
Closing date
10th March 2017
Policy area
Status

The electricity System Operator (SO) has a key role in our electricity system. It can have a significant impact on short and long run system costs. We regulate the SO to help ensure its actions are aligned with the interests of consumers. Where appropriate, we use incentives to encourage the SO to innovate and drive continuous improvements in its performance.

On 12 January we published our consultation on the future arrangements for the SO. In this consultation we highlight our belief that the SO’s role needs to evolve, to ensure it is well placed to both respond to and help facilitate the transformation of the electricity system over the coming decades. We also highlight our view that further separation between National Grid’s electricity SO and electricity Transmission Owner (TO) functions would be in the interest of consumers.

This document launches our review of how the SO regulatory framework can be designed to ensure the SO delivers the best possible outcomes for consumers under its proposed future role and structure. We expect to first introduce changes to this framework from April 2018 onwards.

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