Climate change is the challenge of our generation and decarbonising the energy system is a huge part of it. We need to move from fossil fuels to cleaner energy sources, while making sure our system is secure and affordable for everyone.
That’s why a new public corporation, owned by the Government, is being set up as the Future System Operator (FSO). The FSO will look across Great Britain and across fuels, giving an independent view of the entire energy system.
It will be founded on the Electricity System Operator and take on new responsibilities – from network planning to markets, resilience, security of supply and giving valuable energy insights. When these elements are looked at by one organisation using a whole system mindset, is when the real value of what we do is delivered.
But this organisation won’t solve the decarbonisation challenge on its own. Players from across the energy system and beyond need to come together to deliver a greener, more secure and affordable energy future.
Join the conversation – let’s decarbonise Great Britain together.
Join our webinars
Take part in our Introduction to the FSO webinars this December to learn more about the FSO and explore how we can work together to achieve this vision.
The sessions will set the scene for the creation of the FSO and explore the roles it will take on to facilitate the transition to a secure and zero-carbon energy system as well as providing an opportunity for FSO Q&A.
Why do we need the FSO?
Unparalleled change is needed across the whole system to transition away from fossil fuels and deliver clean, green affordable energy for everyone across the country.
There needs to be wider adoption of technology and changes in consumer behaviour, as well as ensuring we have the right markets, networks and frameworks in place.
Traditionally, Britain’s energy system has been split into two areas – gas and electricity – but to deliver this transformation there needs to be co-ordination across the whole energy system, with one single entity responsible for translating policy into immediate strategy.
The new Future System Operator will shift the country from a siloed approach to a whole system perspective that considers the connections between energy vectors and their relationship with the wider system.
How did the FSO come about?
In 2022, following industry consultation, Ofgem and Government decided that the country needed a new, independent organisation that would take a whole system approach to strengthen energy security, help deliver net zero and ensure household bills are affordable in the long-term.
In October 2023, the Energy Act 2023 was passed, legislating for this Future System Operator (FSO) to be created.
What will the FSO do?
The new organisation will be founded on the current activities and capabilities of the Electricity System Operator, but we’ll also take on new roles with a whole system perspective across energy vectors.
From Day 1, we will deliver additional value for the energy system across these five areas:
What are the timelines?
The FSO will be established in 2024, with new roles and capability being introduced in a phased approach. Secondary legislation is required; therefore, specific timelines are subject to change.
You can read about our indicative plan and costs to achieve the FSO in our BP2 plan.