Consultation: Market facilitator delivery body

Achieving the UK's net zero target by 2050 will require radical changes across the energy system. This transformation is already underway, including in how we heat our homes, power our vehicles, and generate electricity. This will require changes across the energy system, which must be smart, flexible, and operate through well-facilitated, accessible, transparent, and coordinated flexibility markets.

We published a Call for Input in April 2022, launching a review into the effectiveness of institutional and governance arrangements at a sub-national level. The responses received strongly validated the need for a change, including in local flexibility market arrangements.

In March 2023 we consulted on a proposed reform package for local governance arrangements, including a proposal to create a new market facilitator role as a single, expert entity with a mandate to grow and develop local flexibility markets. In responses, there was strong support for creating a market facilitator and support for the Future System Operator (FSO) taking on the role, however some respondents also suggested that Elexon should be considered.

In November 2023 we confirmed our intention to create a market facilitator.
Today we are publishing a consultation to help decide the best suited entity for the market facilitator role. We are seeking views and input from stakeholders on:

• Which entity is best suited to take on the market facilitator role: Elexon or the FSO
• The trade-offs and key considerations for both options
• Design principles for the market facilitator

Consultation: Market facilitator delivery body

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