Elexon ownership - Government and Ofgem’s response to consultation
Decision
Publication date
Company
Industry sector
- Supply and Retail Market
- Generation and Wholesale Market
- Distribution Network
- Transmission Network
On 14 July 2022, Government and Ofgem published the joint consultation on the future ownership of Elexon
The decision following this consultation can be found on the Government’s website and the non-confidential consultation responses can be found on Ofgem’s website.
Summary of the decision
Government and Ofgem have jointly published the Government Response to the consultation on the future ownership of Elexon with a decision on the change in ownership of Elexon. This follows the publication of the consultation on the future ownership of Elexon on 14 July 2022 and the Future System Operator (FSO) decision document published in April 2022.
The Elexon Ownership Consultation in July 2022 set out the rationale for considering the future ownership of Elexon due to the establishment of the FSO. It set out the criteria the decision will be taken against, as well as Government and Ofgem’s preferences. The consultation was published in July 2022 and closed in September 2022.
The Government/Ofgem response to this consultation sets out a summary of responses, and our key decisions. The key decisions taken are as follows:
- Elexon will remain in industry ownership
- 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
- the temporary fallback option whereby Elexon will become a public body is retained
- these policies will be implemented through licence and code changes.
We received 28 responses to the consultation from a range of organisations. These were primarily from the energy industry (including generators, suppliers, traders and system bodies), trade organisations and consumer interest groups.
During the consultation period we also held a webinar and Q&A session, as well as several small sessions for specific industry parties.
The response document setting out the decision can be found on the Government’s website.
If you would like any more information, please email futuresystemoperator@beis.gov.uk noting ‘Elexon’ in the subject title.