Decision notice to establish National Energy System Operator (NESO)
Summary
Decision Notice to establish the National Energy System Operator (NESO). Formally creates NESO as the GB Independent System Operator and Planner under the Energy Act 2023 framework.
Why it matters
Foundational document. NESO replaced National Grid ESO from October 2024 as the integrated system operator across electricity and gas, with strategic planning powers under the Energy Act 2023. The Decision Notice is the legal instrument that brought it into existence. Everything since (BP3, enduring framework, Associated Documents, code modifications) flows from this.
Areas affected
Related programmes
Memo
Decision notice to establish National Energy System Operator (NESO) | 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: Decision notice to establish National Energy System Operator (NESO) Publication date: 13 September 2024 Topic: Electricity transmission Print this page Related links Response to statutory consultation on National Energy System Operator licences and other impacted licences Response to statutory consultation on modifications to industry codes to implement the Independent System Operator and Planner (ISOP) The future ownership of Elexon: new electricity supply and generation licence conditions and Balancing and Settlement Code (BSC) changes - government and Ofgem policy response to consultation Share the page Share on Facebook Share on Twitter Share on LinkedIn The Secretary of State for the Department for Energy Security and Net Zero (DESNZ) and the Gas and Electricity Markets Authority (GEMA) have decided to establish the National Energy System Operator (NESO). The accompanying Decision Notice details decisions in relation to previous consultations on relevant supporting regulatory changes. Please note that this does not list all the decisions required to establish NESO. However, it includes: NESO’s two new licences , the Electricity System Operator Licence (ESO) and the Gas System Operator Planner (GSP) Licence modifications to existing licences that are impacted by the designation of the ISOP modifications to industry codes (and in the case of the Balancing and Settlement Code, code subsidiary documents) to implement the Independent System Operator and Planner (ISOP) modifications to the electricity generation and electricity supply licences and the Balancing Settlement Code to support the change in ownership of Elexon The regulatory changes listed in these consultation responses will come into effect on 1 October 2024. Note, the Decision Notice includes decisions made by both the Secretary of State and the Gas and Electricity Markets Authority (GEMA). Please reference this for details of the Relevant Authority under the Energy Act 2023 for each decision. In addition, the Secretary of State of DESNZ has issued direction letters in relation to Elexon’s new ownership structure as a result of establishing NESO. These letters are issued to 13 licensees pursuant to Electricity Supply Standard Licence Condition 60 and Generation Licence Standard Licence Condition 21. These licence conditions are brought into effect by the Decision Notice, and Ofgem have today published the letters. Main document Decision Notice [PDF, 272.24KB] ESO Licensing Direction and Licence Terms and Conditions [PDF, 1.89MB] GSP Licence Terms and Conditions [PDF, 751.30KB] Elexon ownership Direction Letters [ZIP, 1.13MB] Print this page Related links Response to statutory consultation on National Energy System Operator licences and other impacted licences Response to statutory consultation on modifications to industry codes to implement the Independent System Operator and Planner (ISOP) The future ownership of Elexon: new electricity supply and generation licence conditions and Balancing and Settlement Code (BSC) changes - government and Ofgem policy response to consultation Share the page Share on Facebook Share on Twitter Share on LinkedIn Close