Funding National Grid’s consequential costs from the separation of the Electricity System Operator

Funding National Grid’s consequential costs from the separation of the Electricity System Operator | 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: Funding National Grid’s consequential costs from the separation of the Electricity System Operator Publication type: Consultation Publication date: 2 September 2024 Closed date: 15 October 2024 Status: Closed (with decision) Decision: Funding National Grid’s consequential costs from the separation of the Electricity System Operator Print this page Related links Decision on the funding of the transition to a Future System Operator National Energy System Operator (NESO) licences and other impacted licences: statutory consultation Share the page Share on Facebook Share on Twitter Share on LinkedIn In April 2022, Ofgem and the Department for Energy Security and Net Zero (DESNZ) jointly decided to proceed with the creation of a new, independent system operator, known as National Energy System Operator (NESO). To deliver NESO, the existing Electricity System Operator (ESO) is being separated from National Grid plc (NG) and acquired by Government. This process has associated costs for the ESO and NG. In June 2023, we consulted on a cost recovery framework for these companies to fund and deliver the separation work needed to achieve Day 1 of NESO, which is the first day NESO will be established as a standalone entity that is independent from NG. As part of this consultation, we acknowledged that there could be consequential costs to NG resulting from the ESO no longer being part of NG’s shared services function. This consultation sets out our proposals for funding these consequential costs via a new term to adjust to NGET's totex allowance for the remaining duration of RIIO-2. The consultation is open for 6 weeks, until 14 October 2024. Responses should be sent to FSO@ofgem.gov.uk and clearly marked where considered to be confidential. Respond name David Beaumont Respond telephone 020 7901 7000 Respond email FSO@ofgem.gov.uk Main document Consultation on funding National Grid’s consequential costs from the separation of the ESO [PDF, 331.79KB] Subsidiary documents National Grid consequential costs annex [PDF, 564.93KB] Response documents National Grid's consultation response [PDF, 1.27MB] Print this page Related links Decision on the funding of the transition to a Future System Operator National Energy System Operator (NESO) licences and other impacted licences: statutory consultation Share the page Share on Facebook Share on Twitter Share on LinkedIn Close