The future ownership of Elexon

BEIS and Ofgem are jointly consulting on proposals for the future ownership of Elexon.

Elexon is a wholly owned but operationally independent subsidiary of National Grid Energy System Operator (NGESO). It is governed by its own Board and by the Balancing and Settlement Code (BSC) Panel (which is made up of industry, consumer, and independent experts). Elexon plays a key role in the electricity market, with its main roles being to administer the BSC and to carry out the settlement of imbalances between predicted and actual electricity generation and use.

It is the future purchase of NGESO to create the Future System Operator (FSO) that necessitates consideration of the ownership of Elexon. To ascertain what the best ownership model is, we need to carry out a consultation.

This document follows on from the consultation regarding the FSO, and the recent response, which included a question concerning Elexon.

The document sets out criteria against which ownership options are compared, and the 2 ownership options that meet the criteria, public ownership and industry ownership. We also consider:

• government and Ofgem’s preferred ownership option for Elexon

• a temporary fallback option in the case of the industry ownership option being chosen, but where implementation of it could cause a delay to the FSO being established

• potential combinations of BSC parties which could own Elexon under the industry ownership option

Proposed license and code changes associated with each of the two ownership options.

Read the BEIS consultation privacy notice.