GovWire

Decision: Designation of the National Energy System Operator (NESO)

Ofgem

September 13
06:00 2024

The Energy Act 2023 established the legislative framework forcreating and regulating the National Energy System Operator (NESO), and transferring ownership of the Electricity System Operator (ESO) and Elexon.

The National Energy System Operator (NESO) will be an independent, expert, impartial body with new roles across electricity and gas.

The attached Decision Notice contains and gives the requisite notice of the final decisions, made using powers in the Energy Act 2023, that are required to be published. The decisions all come into effect on 1 October 2024 at 00.00 hours.

As part of the Decision Notice the Secretary of State makes and notifiesseveral decisions connected to the establishment of NESO and transfer of Elexon, including:

  • make the Electricity Licensing Direction (that is, to convert NGESOs current transmission licence to NESOs Electricity System Operator Licence)
  • grant the new Gas System Planner Licence to NESO
  • make certain modifications to existing industry licences and codes
  • designate NESO as the Independent System Operator and Planner under the Energy Act 2023

The Decision Notice also gives notice of Ofgems related decisions to further modify industry codes.

Background to this decision

Several consultations have fed into the establishment of NESO:

and the future ownership of Elexon:

Third Party Compensation Regulations 2024

The Independent System Operator and Planner (Designation) Third Party Compensation Regulations 2024 set out further information about eligibility and the process for any directly impacted third parties to make a claim for compensation.

Updates to this page

Published 13 September 2024

Sign up for emails or print this page

Related Articles

Comments

  1. We don't have any comments for this article yet. Why not join in and start a discussion.

Write a Comment

Your name:
Your email:
Comments:

Post my comment

News Calendar

Recent Comments

Follow Us on Twitter

Share This


Enjoyed this? Why not share it with others if you've found it useful by using one of the tools below: