Consultation on supply and generation licence conditions to implement new ownership arrangements for Elexon
Consultation
- Upcoming
- Open
- Closed (awaiting decision)
- Closed (with decision)
Publication date
Closed date
Company
Industry sector
- Supply and Retail Market
- Generation and Wholesale Market
- Distribution Network
- Transmission Network
Related links
In July 2022, we published a joint consultation with the Department for Energy Security and Net Zero (the Department) on the future ownership of Elexon. This followed the April 2022 decision to create the Future System Operator (FSO).
In March 2023, the Department and Ofgem published their joint decision to the joint July 2022 consultation on the future ownership of Elexon.
The March 2023 joint response to the consultation on Elexon ownership set out the key decisions that Elexon will remain in industry ownership and the shares in Elexon will initially be transferred to the 13 licensed Balancing and Settlement Code (BSC) funding parties with a greater than 2% funding share in Elexon as of 1 January 2023. We stated that implementation of these policies would be supported by licence and code changes.
We are now consulting on proposed new electricity supply licence and generation licence conditions to implement the decision on future ownership of Elexon, and to provide for the Secretary of State or the Authority to direct relevant licensees to hold a share in Elexon.
This is the first stage of a two-stage consultation. In this initial consultation we set out draft text for a licence condition.
Other aspects of ownership including rights and responsibilities of the shareholders, management of the allocation and transfer of shares and treatment of liabilities will be set out in the Balancing and Settlement Code and are the subject of a separate engagement exercise with BSC parties led by Elexon.
If you would like any more information, please email FSO@ofgem.gov.uk noting ‘Elexon ownership’ in the subject title.