National Energy System Operator coming in Britain

Britain’s future energy system operator is to be known as the National Energy System Operator, National Grid ESO has announced.

The new organisation, which is expected to be launched in the Summer of 2024, will be an independent public corporation responsible for planning Britain’s electricity and gas networks and operating the electricity system.

It will be tasked with ensuring that Britain’s energy system is secure and affordable and forging the path to a sustainable future for everyone through its role in coordinating across the whole energy system and considering the connections between energy vectors and their relationship with the wider system.

“We’re delighted and excited to reach a key next step in our journey and to introduce the identity of this new organisation, National Energy System Operator, which will be at the heart of the whole energy system,” commented Fintan Slye, Executive Director of National Grid ESO.

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“We are continuing to deliver on our core role of energy security, affordability, and sustainability as ESO today, and to transform elements of the business to ensure we are ready to take on new accountabilities as the National Energy System Operator later this year.”

The ‘future system operator’ and its role was established in Britain’s Energy Act 2023, following a consultation that determined the need for a ‘whole system’ approach to the energy markets, including both the existing electricity and gas systems as well as future emerging markets of hydrogen and carbon capture and storage, to deliver on the net zero goals.

The outcome of the consultation was that the body should also be independent of asset ownership and other commercial energy interests, and from day-to-day operational control of the government.

Up to then the electricity and gas system operators were owned by National Grid.

The new scheme sees the National Energy System Operator founded on the National Grid ESO with the addition of new responsibilities, while the former National Grid Gas, now National Gas, continues as the owner and operator of the national gas network.

The company through its subsidiary National Gas Metering maintains and manages around 6.8 million domestic, industrial and commercial combined gas assets, while National Gas Services provides pipeline repair, maintenance and intervention.

Akshay Kaul, Director General for Infrastructure at Ofgem, said: “We’re pleased to see the Future System Operator come one step closer to reality with this new name and identity, which underlines the instrumental role it will play as an independent, expert organisation tasked with guiding Britain’s transition to net zero.