Decision on the funding of the transition to a Future System Operator


On 21 June 2023, we published a consultation on a set of policy proposals for funding the transition to a Future System Operator (FSO). These policies aimed to allow National Grid plc. (NG) and National Gas Transmission (NGT) to recover efficient and economic costs incurred as part of their separation activities to achieve Day 1 of the FSO. We also sought views on our proposals for a reporting framework to ensure ongoing transparency over National Grid Electricity System Operator (ESO) and NG’s delivery of separation plans and actual spend.

We invited responses to this consultation by 3 August 2023. We have reviewed the responses we received and this document sets out our decisions, as well as our rationale and consideration of stakeholder responses.

The decision will come into effect on 28 September 2023.