The UK Government has announced plans to launch a new public body, the Future System Operator, to oversee the energy network.
The Future System Operator (FSO), to be launched once legislation is passed and timelines have been discussed with key parties, will look at the Great Britain’s energy system as a whole, integrating existing networks with emerging technologies such as hydrogen.
Commenting on today's announcement, David Smith, Chief Executive of Energy Networks Association, which represents the UK and Ireland’s energy network companies, said:
“We all know that Net Zero is a major step-change for the entire energy industry and we are glad that the government has been able to give this clear direction on the Future System Operator. Coordination and cooperation across electricity and gas transmission and distribution networks, as well as all other players in the energy sector will allow us to make even greater strides towards decarbonising effectively and efficiently.”
Notes to editors
- There is a need for the industry to recognise that the scale and complexity of the changes required, particularly at a distribution level, are significantly larger and therefore need to be fully understood and well evidenced when considering interactions with the FSO and any other changes at a distribution level.
- As part of the shift to FSO, there is an opportunity to holistically consider the wider market reforms and ensure that the FSO proposal ties in with other policy areas, including work on network charging (i.e. Ofgem-led Significant Code Reviews), full chain flexibility, Ofgem's review of network planning, digitalisation, and the government's hydrogen strategy.
Photo courtesy of National Grid.
About Energy Networks Association
Energy Networks Association (ENA) is the industry body representing the companies which operate the electricity wires, gas pipes and energy system in the UK and Ireland.
ENA helps its members meet the challenge of delivering electricity and gas to communities across the UK and Ireland safely, sustainably and reliably.
Its members include every major electricity and gas network operator in the UK and Ireland, independent operators, National Grid ESO which operates the electricity system in Great Britain and National Grid Gas which operates the gas system in Great Britain. Its affiliate membership also includes companies with an interest in energy, including Heathrow Airport and Network Rail.
What are energy network operators?
Energy network operators manage and maintain the wires, pipes and other infrastructure which delivers electricity and gas to your home, business and community. They are private companies which are regulated by Ofgem and employ around 45,000 people in the UK and Ireland. They are represented by their industry body, Energy Networks Association (that's us).
Energy supplier or network operator? Energy network operators are entirely separate to your energy supplier, which is the company that bills you for using electricity and gas. Energy suppliers and generators are represented by Energy UK.