Ofgem confirms plans for greater separation of National Grid’s electricity system operator role
3 Aug 2017 04:10 PM
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.
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