A new public body has been launched to boost the security and resilience of UK energy supplies and support the transition to net zero.
The Future System Operator (FSO) will oversee the whole energy network, integrating existing systems with emerging technologies, including hydrogen.
Designed following consultation with industry, it will be launched once legislation is passed and timelines have been discussed with key parties.
The FSO will be founded on the existing capabilities of the Electricity System Operator (ESO), and, where appropriate, National Grid Gas (NGG).
It will work with energy suppliers and networks with the aim of balancing the UK’s electricity systems, ensuring continued energy resilience and security of supply for households and businesses.
It will also provide strategic oversight of the UK gas system by taking on longer-term planning in respect of gas.
Energy security is now a key focus of governments with high global wholesale gas prices and pressure on domestic supplies following Russia’s invasion of Ukraine.
It means consumers are facing increased costs and Westminster is due to publish its energy security strategy imminently.
It will set out ministers plans to ensure greater clean energy independence for the UK.
Energy minister Greg Hands said: “Russia’s appalling aggression in Ukraine amid escalating global gas prices has shown the vital importance of strategic change to the UK energy system. We need to boost our energy resilience, reduce our dependence on expensive imports and slash emissions. The FSO will do just that.”
© Greg Hands/ TwitterThe launch of the FSO is designed to deliver greater energy security whilst ensuring clean energy gets to the homes and businesses across the country.
It will also take a central role in shaping the energy system and facilitating competition, overseeing new projects and integrating them with existing energy supplies.
During consultation with industry there was a broad agreement that the UK needed a new public body with operational independence from government.
The FSO will have a duty to provide independent advice and technical input to ministers and industry regulator, Ofgem, to inform key strategic policy decisions, particularly around emerging technologies like carbon capture and storage (CCS).
It could also go someway to solving the transmission charging issue that has been a long running bug bear of Scotland’s offshore wind industry.
Jonathan Brearley, chief executive of Ofgem, said: “A fully independent system operator will help to transform Great Britain’s energy system and cut customers’ energy bills. Critically, the FSO will ensure that we will build a smart, efficient and flexible system that will mean that Britain moves to a secure low carbon and low-cost system.
“We look forward to working with National Grid, Government and the wider industry to implement this important change in the way the energy system is managed.”
Fintan Slye, Executive Director, Electricity System Operator, said: “We warmly welcome today’s announcement that the ESO will be at the heart of the system operator of the future. Building on our track record and skills as a world leading system operator, together with industry and Government and regulators we will help deliver an affordable, reliable and clean transition for all.
“The ESO will continue working closely with all parties involved in the coming weeks and months to enable a smooth and successful transition.”
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