NESO regulatory framework: decision on associated documents for the BP3 period
Summary
Ofgem decision on the two NESO Associated Documents for the BP3 period: the NESO Licence Expectations Document (previously the Roles Guidance) and the NESO Performance Arrangements Governance Document.
Why it matters
Final form of the Associated Documents that flesh out the NESO licence. Companion to the Performance Incentives Framework decision. Together these define how NESO is held accountable during BP3. The Licence Expectations Document is the substantive baseline; the Performance Arrangements doc is the audit framework.
Areas affected
Related programmes
Memo
NESO regulatory framework: decision on associated documents for the BP3 period | 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: NESO regulatory framework: decision on associated documents for the BP3 period Publication type: Decision Publication date: 1 April 2025 Topic: Gas transmission, Electricity transmission, National Energy System Operator (NESO) Decision for: NESO regulatory framework: Associated Documents for the BP3 period Print this page Related links Decision on NESO’s performance incentives framework for BP3 National Energy System Operator (NESO) licences and other impacted licences: statutory consultation Response to statutory consultation on National Energy System Operator licences and other impacted licences Share the page Share on Facebook Share on Twitter Share on LinkedIn In February 2024, we consulted on two Associated Documents (ADs) to the Electricity System Operator and Gas System Planner licences held by National Energy System Operator’s (NESO) for the RIIO-2 Business Plan 3 (BP3) period. These documents are: The NESO Licence Expectations Document (previously called the Roles Guidance) The NESO Performance Arrangements Governance Document These ADs support NESO’s regulatory framework. They provide further details on the processes used to assess NESO’s performance, as well as the behaviours we expect from NESO in relation to its licence conditions. Our decision We have considered all the responses and have made our decision on the final versions of the ADs for the BP3 period. We have also issued a direction under NESO’s licences to issue the two ADs. These documents apply from 1 April 2025. Our decision letter and Response Log explain the changes we have made to these ADs since our February consultation, and our response to stakeholder comments. We have included both clean and tracked versions of these documents below for transparency. Main document Decision and Directions to NESO's ADs for RIIO-2 BP3 [PDF, 131.10KB] Subsidiary documents Decision - NESO Licence Expectations Document Tracked [PDF, 551.00KB] Decision - NESO Licence Expectations Document Clean [PDF, 422.69KB] Decision - NESO Performance Arrangements Governance Document Tracked [PDF, 299.89KB] Decision - NESO Performance Arrangements Governance Document Clean [PDF, 283.61KB] Annex 2 - Response Log to Consultation Responses [XLSX, 79.36KB] Print this page Related links Decision on NESO’s performance incentives framework for BP3 National Energy System Operator (NESO) licences and other impacted licences: statutory consultation Response to statutory consultation on National Energy System Operator licences and other impacted licences Share the page Share on Facebook Share on Twitter Share on LinkedIn Close