National Grid ESO (ESO) yesterday revealed that the new Future System Operator (FSO) – a key component of the October 2023 Energy Act – will be named National Energy System Operator (NESO).
Set to begin operation this Summer, NESO will be an “independant, expert and impartial organisation” responsible for operating Britain’s electricity and gas networks, as well as coordinating Britain’s energy system.
Its role will incorporate ensuring the energy system is “secure and affordable” as well as ensuring it is prepared for net zero.
Speaking on the announcement Fintan Slye, executive director at the ESO said: “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.”
Slye added that the ESO will continue to deliver its role as the ESO today whilst transforming “elements of the business” ahead of taking on its accountabilities as the NESO in Summer 2024.
“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,” said Akshay Kaul, director general for infrastructure at Ofgem.
“This new National Energy System Operator will drive forward net zero across both the electricity and gas systems, operating a ‘whole system’ approach. It will hold responsibilities in operations, strategic network planning, long-term forecasting and market strategy, and will deliver these roles while maintaining energy security and minimising costs for consumers.”
NESO is also currently under consideration for the role of market facilitator, which will be tasked with coordinating demand flexibility offers. Ofgem is currently holding a consultations – due to close 7 February – considering whether the new FSO or Elexon are best placed to fulfill the role.