https://www.gov.uk
- Government to create new Future System Operator (FSO) to oversee
- new body will boost security and resilience of
- proposal follows consultation with industry who backed the creation of a new public body
The government has today committed to delivering a new public body to strengthen the resilience of
The Future System Operator (FSO), to be launched once legislation is passed and timelines have been discussed with key parties, will look at the
The FSO will be a new public body founded on the existing capabilities of the Electricity System Operator (ESO), and, where appropriate,
With high global wholesale gas prices and renewed pressure on energy networks following
Today's announcement comes ahead of the forthcoming Energy Security Strategy to be published later this week which will set out our approach to ensuring greater clean energy independence for
Energy Minister
A fully independent system operator will help to transform
We look forward to working with
We warmly welcome today's announcement that the ESO will be at the heart of the system operator of the future. Building on our track record and skills as a world leading system operator, together with industry and government and regulators we will help deliver an affordable, reliable and clean transition for all.
The ESO will continue working closely with all parties involved in the coming weeks and months to enable a smooth and successful transition.
The move aims to further build the resilience that energy providers and billpayers need. This will deliver greater energy security whilst ensuring the clean energy produced by the
As a trusted and expert body at the centre of the gas and electricity systems, the FSO will take a significant role in shaping the energy system and facilitating competition, overseeing new projects and integrating them with existing energy supplies.
The announcement follows extensive consultation with the energy industry, where there was broad agreement that
The operator will take a whole-system approach to coordinating and planning the network, looking across electricity, gas and other emerging markets such as carbon capture, usage and storage, as well as offshore wind networks.
The FSO will also have a duty to provide independent advice and technical input to the government and industry regulator, Ofgem, to inform key strategic policy decisions.
The consultation responses, published today, also give Ofgem a new strategic function overseeing energy companies' governance codes. This decision is expected to result in a long-term net benefit for industry and consumers, by ensuring that the detailed technical and commercial rules which guide energy providers keep pace with our net zero ambitions and deliver for
The creation of the FSO and the government's reform to the governance arrangements of the energy codes are set out in the official response to the consultations launched in
Stakeholders broadly endorsed the proposed changes in consultation, with many arguing for these high levels of ambition and citing a clear need for more coordinated, strategic and whole systems planning.
We will work closely with
There are other proposed roles for the FSO which are closely linked to other strategic work being undertaken by BEIS and/or Ofgem, which respondents agreed needed further consultation and engagement as the details are further developed.
The consultation responses also set out our decision to create a new governance framework for the energy codes, which will entail granting Ofgem new strategic code functions, including the ability to select and license code managers, in order to better enable strategic change to the codes and create a more responsive regulatory landscape.
This decision is expected to result in a long-term net benefit for industry and consumers, with no adverse material impact on consumer energy bills.
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