Parliamentary Under Secretary of State for Energy (): Our nation stands at a
pivotal moment in our energy and net zero journey. As we navigate
the challenges of energy security and the urgent need for a
sustainable future, I am proud to announce the publication of the
joint Government-Ofgem response to the Statutory Consultation on
National Energy System Operator (NESO) licences and other
impacted licences.
NESO will be a trailblazing, independent entity, serving as a
trusted voice at the core of our energy sector. It will spearhead
strategic planning for our energy systems and networks, manage
the electricity system with precision and play a crucial role in
achieving our overarching energy strategy and objectives.
NESO's independence from commercial interests and operational
control of the government will enable it to provide unbiased,
expert advice on critical decisions that will shape our energy
landscape for decades to come, including our Clean Power 2030
target.
As we move forward, NESO's role will be instrumental in achieving
our net zero and energy security goals. By fostering innovation,
enhancing system resilience, and promoting transparency, NESO
will help navigate the complexities of our evolving energy
system. We are enormously grateful for the valuable input from
industry stakeholders, whose insights have been integral to
shaping the future of NESO.
NESO will be regulated by Ofgem through two new licences, and
this consultation response marks a significant milestone in
establishing NESO's regulatory regime. The final step will be for
the Secretary of State to grant NESO these licences under the
powers conferred by the Energy Act 2023. The Department for
Energy Security and Net Zero and Ofgem are aiming to establish
NESO this year.
Our response addresses thematically the feedback raised by
stakeholders to the consultation on the contents of these
licences published in March 2024. The key themes include NESO
transparency and industry feedback, incentives and performance,
energy resilience and critical national infrastructure, network
planning, NESO transitional service agreements, future roles, UNC
Arrangements, and on NESO's advisory role.
Alongside this response document, we are also publishing updated
versions of NESO's licences.
The establishment of NESO is intended to apply only to England,
Scotland, and Wales. Energy is generally devolved in Northern
Ireland.
