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Call for Input on the Electricity System Operator's BP2 mid-scheme performance

OFGEM·consultation·medium·25 Mar 2024·source document

Summary

Ofgem seeks stakeholder feedback on the Electricity System Operator's performance during the second year of its Business Plan 2 period under RIIO-2 price controls. The consultation closed on 6 May 2024 and received five responses from industry bodies including transmission companies and energy businesses. This assessment feeds into Ofgem's annual evaluation of whether the ESO has met, exceeded, or failed to meet its deliverables across its three core roles.

Why it matters

Performance assessment mechanisms for the ESO create accountability for system operation costs that ultimately flow through to consumers, but the structure relies on regulatory oversight rather than market-based incentives. The consultation responses suggest transmission companies and large energy businesses remain the primary voices in ESO performance evaluation, potentially missing perspectives from smaller market participants who bear the costs of system operation failures.

Questions being asked

ESO Performance Assessment

  • What feedback do you have on the ESO's three roles and deliverables from April 2023 to date?
  • In which areas do you feel the ESO has met, exceeded or failed to meet expectations?

Key facts

  • Consultation ran from 25 March to 6 May 2024
  • Assessment covers ESO performance from April 2023 onwards
  • Five responses received from ADE, Centrica, SP Transmission, SSE Energy Businesses, and SSEN Transmission
  • Forms part of annual RIIO-2 Business Plan 2 performance evaluation

Timeline

Consultation closes6 May 2024

Areas affected

transmissionwholesale marketnetwork charges

Related programmes

RIIO-ET3
Memo

Call for Input on the Electricity System Operator's BP2 mid-scheme performance | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Call for Input on the Electricity System Operator's BP2 mid-scheme performance Publication type: Call for input Publication date: 25 March 2024 Closed date: 06 May 2024 Status: Closed Topic: Energy network price controls, Electricity transmission Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Later this year, Ofgem and the Independent Performance Panel will assess the Electricity System Operator's (ESO) performance over the last year of the Business Plan 2 period of the RIIO-2 price control. This call for evidence requests stakeholder input on the ESO's performance. We welcome any feedback on the ESO's three roles and its deliverables laid out in its business plan from April 2023 to date. This includes areas where you feel the ESO has met, exceeded or failed to meet any expectations. Please send written feedback to esoperformance@ofgem.gov.uk by 6 May 2024. Main document Call for Input on the Electricity System Operator's BP2 mid-scheme performance [PDF, 115.59KB] Response documents Call for Input on the Electricity System Operator's BP2 mid-scheme performance - ADE response [PDF, 205.14KB] Call for Input on the Electricity System Operator's BP2 mid-scheme performance - Centrica response [PDF, 288.88KB] Call for Input on the Electricity System Operator's BP2 mid-scheme performance - SP Transmission response [PDF, 110.48KB] Call for Input on the Electricity System Operator's BP2 mid-scheme performance - SSE Energy Businesses response [PDF, 149.58KB] Call for Input on the Electricity System Operator's BP2 mid-scheme performance - SSEN Transmission response [PDF, 265.11KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close