Elexon views about decisions on the Future System Operator role and the codes review
Today the Department for Energy Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem jointly responded to the consultations they published in July 2021 on a Future System Operator (FSO), and reforming the energy codes. National Grid ESO will move away from National Grid plc and become an independent, publicly owned FSO.
As part of that process there will also be a consultation on the ownership of Elexon, which is currently owned by National Grid ESO.
Code managers will need to be licensed
The response has confirmed that code administrators and code panels will be replaced by arrangements where Ofgem will license code managers and make them responsible for playing an enhanced role in the code change process, delivering the strategic direction set by the regulator.
Elexon supports the changes
We support these changes and believe that they are a sound basis for ensuring that the energy sector can deliver progress to Net Zero. Elexon has long been a strong proponent of consolidation and simplification of the energy industry codes and has supported reform of the System Operator arrangements. We therefore welcome these proposals.
We are in discussion with BEIS about the plans and we look forward to working with Government, Ofgem and stakeholders to implement the reforms.