Policy Compass
Gas transmission

Financial Handbook: National Energy System Operator (NESO)

National Energy System Operator Financial Handbook decision

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The Financial Handbook comes into effect from 15 October 2024.

It forms part of:

  • Licence Condition F5 (Financial Model and Handbook) in the Electricity System Operator Licence Conditions 
  • Licence Condition F4 (Financial Model and Handbook) in the Gas System Planner Licence Conditions held by NESO

The Financial Handbook outlines:

  • what the Financial Model and Legacy Closeout Model are
  • NESO’s responsibilities towards the Financial Models
  • an overview of the variable values used in the NESO Financial Model
  • how to revise or calculate certain variable values
  • the different methodologies

We have also published the initial templates for the NESO Financial Model and Legacy Closeout Model.

Who the handbook is for

The handbook is aimed at NESO and other industry stakeholders.
 

Main document

[NESO Financial Handbook [PDF, 372.52KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-10/NESO_Financial_Handbook.pdf)

[NESO Financial Model 15 October 2024 [XLSX, 204.23KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-10/NESO_FM_20241015.xlsx)

[NESO Legacy Closeout Model 15 October 2024 [XLSX, 124.06KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-10/NESO_LCM_20241015.xlsx)

National Energy System Operator Financial Handbook decision

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