Britain’s National Energy System Operator launched

Britain’s National Energy System Operator (NESO) launched on 1 October as an independent system planner and operator.

The NESO, which replaces the former National Grid ESO, was established in the 2023 Energy Act to accelerate the country’s energy transition through a ‘whole system’ approach.

Its primary duties are focussed on the enablement of net zero, promoting efficient and economic systems for electricity and gas and ensuring security of supply.

Secondary duties are facilitating competition and understanding changes for consumers and the linkages across systems.

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“The creation of NESO is driven by an urgent need to unify and optimise our approach to energy,” writes CEO Fintan Slye in an introductory document.

“Our purpose is to forge the path to a sustainable future for everyone. We must deliver on this purpose while ensuring that our energy system remains secure and affordable.”

The NESO is intended to bring together into one organisation eight activities – energy insights, strategic planning, security of supply, resilience and emergency management, energy markets, systems operations, connections, data and AI – required to deliver the plans, markets and operations of the energy system of today and the future.

Six priorities have been identified to guide the NESO’s efforts through to 2026, which corresponds to the end of its current regulatory period.

These are:
● Clean power – enabling a zero carbon electricity system by adopting a whole system approach, with the main deliverable of Clean Power 2030 pathways balancing services reform, zero carbon operation and connections reform.
● Decarbonised energy – developing integrated plans for a decarbonised, efficient and flexible energy system fit for the future, including a centralised strategic network plan, regional energy strategic plans, spatial strategic energy plan and a flexibility strategy.
● Consumer value – unlocking around £3 billion (US$3.6 billion) of consumer benefits by 2026 through a balancing costs strategy, initiatives to increase market participation and technology modernisation.
● Customer centricity – understanding and balancing the different needs of customers.
● Digital mindset – unlocking the potential of technology and teamwork through a digital-first approach, with a focus on accelerating the use of AI and data sharing across the industry and prioritising transparency and customer-focused solutions.
● People value – investing in the NESO’s people, with a strong emphasis on both the breadth of skills and on the foundational skills in digital and data literacy, critical problem-solving, holistic thinking and effective engagement.

The NESO is owned by the government but is intended to be operationally independent.

Governance is under an independent board, of which the inaugural chair is Paul Golby, a former CEO of E.ON UK.