Proposals for a Future System Operator role

BEIS and Ofgem are jointly consulting on proposals for an expert, impartial Future System Operator (FSO) with responsibilities across both the electricity and gas systems, to drive progress towards net zero while maintaining energy security and minimising costs for consumers.

Our proposal is for all the current National Grid Electricity System Operator (ESO) roles and functions to be carried out by the FSO, and that the FSO should undertake strategic network planning, long-term forecasting, and market strategy functions in gas. We also consider:

• the new roles and functions an independent FSO could potentially fulfil in gas and electricity, including in network planning and independent advice
• the options for organisational models where we explore a standalone privately owned model independent of energy sector interests and a highly independent corporate body model classified within the public sector, but with operational independence from government
• implementation where we have proposed a phased implementation of the FSO, founded on the existing capabilities of National Grid ESO and where appropriate National Grid Gas