National Grid Electricity System Operator (ESO) has announced the name of the forthcoming future system operator (FSO).
The new organisation will be known as the National Energy System Operator (NESO).
It is due to launch on 1 July and will be responsible for coordinating across the whole energy system.
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.
“We are continuing to deliver on our core role of energy security, affordability, and sustainability as ESO today, and to transform elements of the business to ensure we are ready to take on new accountabilities as the National Energy System Operator later this year.”
The news has also been welcomed by government and Ofgem alike.
Akshay Kaul, director general for infrastructure at Ofgem, said: “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.
“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.”
Energy minister Graham Stuart added: “Creating a new public energy body will ensure consumers can access a secure, affordable and decarbonised energy supply for the long-term.
“Established in the landmark Energy Act 2023, the National Energy System Operator marks a new approach to managing the UK’s energy system.”
The government and Ofgem confirmed plans in April 2022 to establish the FSO as an independent, publicly owned corporation by 2024.
It will take on all of the existing roles and responsibilities of the ESO as well as the long-term forecasting and strategic planning functions of the gas system operator owned by National Gas Transmission.
It will also take on new and enhanced responsibilities, including providing expert advice to the government and Ofgem and become a Central Network Planner for the electricity transmission network.
In April last year, Ofgem proposed to create a series of Regional System Planners across the country to coordinate the development of local energy system plans and identified the FSO as the most appropriate candidate to fulfil this role.
Just before Christmas, Ofgem announced that the FSO will be set up under a not-for-profit ownership model.
The regulator also confirmed that its preference is for the FSO to be an operationally independent public corporation, owned by the government.