Ofgem confirms plans for greater separation of National Grid’s electricity system operator role
Ofgem has confirmed that National Grid should proceed with plans to set up a new legally separate company to carry out its electricity system operator function within National Grid plc.
The electricity system operator (ESO) has a central role in planning and operating the electricity system. The role and the form of the ESO needs to adapt to keep pace with a system that is going through a process of change.
In January 2017 Ofgem, Government and National Grid issued a joint statement setting out our intentions for the future of the ESO. At the same time, Ofgem published a consultation on future arrangements for the ESO.
We expect the new system operator company to be fully operational by April 2019.
Notes to editors
- Ofgem has published a decision on greater separation for the system operator.
- The reforms require that the new system operator company will have its own licence, separate staff and offices to other National Grid electricity subsidiary companies. The new company’s board members will not be able to sit on the National Grid Group board or other National Grid electricity company boards.
- See Ofgem’s consultation in January for more details about the new electricity system operator role.
For further information, contact:
Chris Lock: 0207 901 7225
Media out of hours mobile: 07766 511470 (media calls only)
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
Latest News from
Suppliers must do more to help those in debt, as report shows customers accrue more than £600 on average in unpaid bills17/10/2017 12:15:00
Suppliers must do more to help those in debt, Ofgem has said, as new research shows that customers are building up on average over £600 in unpaid bills on their gas and electricity accounts before suppliers step in to help them manage paying it back.
Ofgem extends price protection to 1 million more vulnerable households this winter11/10/2017 15:15:15
Around 1 million households will save £120 a year on average when Ofgem extends its prepayment safeguard tariff for more vulnerable people this winter.
Ofgem cuts £200m from electricity distribution network company allowances18/09/2017 10:15:00
Ofgem has confirmed that the allowances of some of Britain’s electricity distribution network operators (DNOs) will be reduced by around £200m in total following a review of performance in their previous price control (2010-2015).
Latest data on Consolidated Segmental Statements, Supplier Cost Index and standard variable tariffs31/08/2017 12:25:00
Ofgem has published complete annual data1 on the profit margins from the six large energy suppliers’ Consolidated Segmental Statements2 which Ofgem requires them to submit.
Ofgem’s response to National Grid’s proposed network upgrade to connect the new Hinkley Point C nuclear power station31/08/2017 09:15:00
Ofgem yesterday said that an upgrade to the high-voltage grid is needed to connect the new nuclear plant at Hinkley Point, but considers that the costs to consumers of the upgrade can be reduced.