The future ownership of Elexon: new electricity supply and generation licence conditions and Balancing and Settlement Code changes

Consultation

Publication date

Company

Elexon National Grid Electricity System Operator Limited

Industry sector

  • Supply and Retail Market
  • Generation and Wholesale Market
  • Distribution Network
  • Transmission Network

Related links

The Department for Energy Security and Net Zero and Ofgem have today published a joint statutory consultation on new electricity supply and generation licence conditions to support implementation of new ownership arrangements for Elexon. The consultation closes on 21 February 2024.

The consultation draws on responses to previous licence and codes consultations related to Elexon ownership.

In July 2022, we published a joint consultation 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 the decision for the July 2022 consultation.

The March 2023 decision set out that:

  • 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; and
  • the implementation of these policies would be supported by licence and code changes.

In September 2023, we published a consultation on new supply and generation licence conditions to support implementation of 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 was the first stage of a two-stage consultation on new licence conditions. In tandem, Elexon published an informal consultation on changes to the Balancing and Settlement Code (BSC) dealing with related aspects of Elexon ownership including rights and responsibilities of the shareholders, management of the allocation and transfer of shares and treatment of liabilities.

We have also today published the non-confidential responses to the September 2023 consultation on supply and generation licence conditions to implement new ownership arrangements for Elexon.

If you would like any more information, please email FSO@ofgem.gov.uk noting ‘Elexon ownership’ in the subject title.

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