In 2017, Ofgem gave National Grid two years to separate its functions involved in operating the electricity system. This led to the creation of the National Grid Electricity System Operator (ESO) in 2019, although it was still owned outright by National Grid.
However, in January Ofgem recommended creating a new body entirely free from National Grid that would lead the transformation of the UK’s electricity system to its long term goal of carbon-free power. It was also concerned that the relationship between National Grid and its subsidiary ESO could create conflicts of interest.
It seems the Government has now taken that recommendation on board and will, according to The Times, unveil a consultation outlining the creation of a “Future System Operator”. The body would manage the UK’s electricity system, and a new governance framework would also be put in place.
The Government is thought to be making the change in order to ramp up plans to try and meet...