Recent events have also highlighted the importance of energy security to our nation and the impact that the cost of energy has on all our lives. We require unparalleled change across the whole energy system, from wider adoption of technology and changes in consumer behaviour, to 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 a sustainable, affordable and secure energy system, there is need for co-ordination across the whole energy system, with one single entity responsible for translating policy into immediate strategy.
An independent organisation that can design and co-ordinate across the whole energy system means we can deliver an energy system that is clean, affordable, and fair for everyone.
It is against this backdrop that BEIS and Ofgem have published their consultation response, and agreed to set up an expert, independent Future System Operator (FSO) with responsibilities across both the electricity and gas systems and the ability to expand its remit to additional energy vectors when needed. The FSO will be in the public sector, with operational independence from government.
Excitingly for the ESO, we are at the heart of this new company. With our new remit, we will be able to drive progress towards net zero, deliver value for consumers, improve whole energy system decision-making, and support energy security.
