Future ownership of Elexon: licence and code changes

This consultation seeks views on our proposals for the new supply and generation licence conditions and changes to the Balancing and Settlement Code (BSC) required to implement the new ownership arrangements for Elexon.

It also sets out wider policy decisions relating to the ownership of shares in Elexon, to provide supporting guidance and context for the proposed modifications.

The March 2023 government and Ofgem response set out our decision that Elexon will remain an industry body with its shares held by a subset of the industry parties that fund it.

The creation of the Future System Operator (FSO) as a public corporation and the associated purchase of National Grid Electricity System Operator (NGESO) necessitate a change in ownership for Elexon, because Elexon is currently wholly owned by NGESO.

We will make the changes to the ownership structure, licence conditions and code using powers in the Energy Act 2023. The changes involve:

• reflecting the change of ownership in the BSC, which sets out rights and responsibilities of the shareholders, management of the allocation and transfer of shares, and treatment of liabilities
• creating new licence conditions to enable the Secretary of State and the Gas and Electricity Markets Authority to direct relevant parties to hold a share in Elexon

Read our consultation privacy notice.

This consultation is held jointly with Ofgem. Please copy your responses to both addresses:

futuresystemoperator@energysecurity.gov.uk

and

FSO@ofgem.gov.uk