Decision on Associated Documents to the anticipated NESO licences – regulatory framework documents
Decision
- Publication date
- Industry sector
- Transmission Network
- Distribution Network
Related links
- Consultation on the policy direction for the Future System Operator’s regulatory framework
- 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
- Consultation on NESO’s performance incentives framework for BP3
We are today publishing several documents that are associated to and established under the Electricity System Operator (ESO) licence and Gas System Planner (GSP) licence that are due to be held by National Energy System Operator (NESO).
These Associated Documents (ADs) are subject to decisions by the Secretary of State to make an electricity licensing direction (pursuant to section 167 of the Energy Act 2023) and grant the GSP licence. They would take effect on “Day 1” of NESO, when NESO’s designation as the Independent System Operator and Planner and NESO’s ESO and GSP licences take effect.
The ADs help establish the details of NESO’s performance regulation from Day 1 until 31 March 2025. They are:
- the NESO Roles Guidance 2023-25
- the NESO Performance Arrangements Governance Document
- the FSO Transition Funding Governance Document
Our decision letter explains the changes we have made to these ADs since our May consultation. We now look forward to further engagement with stakeholders on NESO’s future regulatory arrangements, including the framework from April 2025, as well as the longer-term arrangements that will apply from April 2026 (following the conclusion of RIIO-2).
We are also today publishing a notice issued in anticipation of the electricity licensing direction being made by the Secretary of State. The reason for this notice is to set out the relevant matters previously made or issued by the Authority that, from Day 1 of NESO, will be revoked and cease to have continuing effect under the ESO licence, or will be modified for the purposes of the ESO licence.