Gas distribution

National Energy System Operator (NESO) licences and other impacted licences: statutory consultation

The Secretary of State for Energy Security and Net Zero proposes to grant (or treat as granted) an Electricity System Operator (ESO) and a Gas System Planner (GSP) licence, and to make modifications to the conditions of other licences.

The Department for Energy Security and Net Zero (DESNZ) and Office of Gas and Electricity Markets (Ofgem) (collectively referred to as “we”) are jointly issuing this statutory consultation.

The reason for these proposals is to bring together the outputs of multiple non-statutory consultations on National Energy System Operator (NESO) which, when the company is created, will be designated as the Independent System Operator and Planner (ISOP) and hold an ESO and GSP licence. This includes the licences, new roles, financial design and incentives, and consequential changes to other licences.

We are also consulting on the Direction that the Secretary of State proposes that will cause National Grid Electricity System Operator Limited’s existing transmission licence to have effect as the ESO licence when NESO is designated as the ISOP.

We are also consulting on modifications to the following licences which will be impacted by the designation of the ISOP:

Electricity Transmission Standard Licence Conditions
National Grid Electricity Transmission plc’s Special Conditions
Scottish Power Transmission Special Conditions
Scottish Hydro Electric Transmission Special Conditions
Electricity Generation Standard Licence Conditions
Electricity Interconnector Standard Licence Conditions
Electricity Supply Standard License Conditions
Electricity Distribution Standard Licence Conditions
All Electricity Distribution Special Conditions (including additional changes to Scottish Hydro Distribution Special Conditions only)
Smart Meter Communication Licence
National Gas Transmission plc’s (NGT) Gas Transporter Licence (Part C) Special Conditions
All other Gas Transporter Licence Special Conditions
Gas Transporter Standard Special Conditions (Part A)
Gas Transporter Standard Licence Conditions

Update on 28 March 2024: Some of the annexes originally uploaded to our website had formatting issues. The correct versions have now been uploaded. This does not have any substantive effect on the modifications we are currently consulting on.

Respond name

Future System Operation

Respond email

FSO@ofgem.gov.uk

Main document

[Statutory consultation on National Energy System Operator licences and other impacted licences [PDF, 611.97KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Main%20document%20-%20Statutory%20consultation%20on%20National%20Energy%20System%20Operator%20licences%20and%20other%20impacted%20licences.pdf)

Subsidiary documents

[Annex A - Notice of statutory consultation for NESO and other impacted licences [PDF, 106.25KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20A%20-%20Notice%20of%20statutory%20consultation%20for%20NESO%20and%20other%20impacted%20licences.pdf)

[Annex B - Reasons and Effects [PDF, 1.11MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20B%20-%20Reasons%20and%20Effects.pdf)

[Annex C - Licensing Direction [PDF, 21.37KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20C%20-%20Licensing%20Direction.pdf)

[Annex D - Electricity System Operator Licence Terms [PDF, 124.03KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20D%20-%20Electricity%20System%20Operator%20Licence%20Terms.pdf)

[Annex E - Electricity System Operator Licence Conditions [PDF, 1.59MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20E%20-%20Electricity%20System%20Operator%20Licence%20Conditions.pdf)

[Annex F - Gas System Planner Licence Terms [PDF, 123.14KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20F%20-%20Gas%20System%20Planner%20Licence%20Terms.pdf)

[Annex G - Gas System Planner Licence Conditions [PDF, 730.60KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20G%20-%20Gas%20System%20Planner%20Licence%20Conditions.pdf)

[Annex H - Licence Drafting Principles [PDF, 84.33KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20H%20-%20Licence%20Drafting%20Principles.pdf)

[Annex I - Electricity Transmission Consolidated Standard Licence Conditions MARKED UP [PDF, 1.67MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20I%20-%20Electricity%20Transmission%20Consolidated%20Standard%20Licence%20Conditions%20MARKED%20UP.pdf)

[Annex J - National Grid Electricity Transmission Consolidated Special Conditions MARKED UP [PDF, 769.89KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20J%20-%20National%20Grid%20Electricity%20Transmission%20Consolidated%20Special%20Conditions%20MARKED%20UP.pdf)

[Annex K - Scottish Power Transmission and Scottish Hydro Electric Transmission Special Conditions [ZIP, 1.17MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20K%20-%20Scottish%20Power%20Transmission%20and%20Scottish%20Hydro%20Electric%20Transmission%20Special%20Conditions.zip)

[Annex L - Electricity Generation Standard Licence Conditions [PDF, 467.59KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20L%20-%20Electricity%20Generation%20Standard%20Licence%20Conditions.pdf)

[Annex M - Electricity Interconnector Standard Licence Conditions [PDF, 663.38KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20M%20-%20Electricity%20Interconnector%20Standard%20Licence%20Conditions.pdf)

[Annex N - Electricity Supply Standard Consolidated Licence Conditions MARKED UP [PDF, 556.48KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20N%20-%20Electricity%20Supply%20Standard%20Consolidated%20Licence%20Conditions%20MARKED%20UP.pdf)

[Annex O - Electricity Distribution Consolidated Standard Conditions MARKED UP [PDF, 571.36KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20O%20-%20Electricity%20Distribution%20Consolidated%20Standard%20Conditions%20MARKED%20UP.pdf)

[Annex P - Smart Meter Communication Licence MARKED UP [PDF, 162.29KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20P%20-%20Smart%20Meter%20Communication%20Licence%20MARKED%20UP.pdf)

[Annex Q - NGT SPECIALS - NTS - Consolidated Special Conditions [PDF, 3.02MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20Q%20-%20NGT%20SPECIALS%20-%20NTS%20-%20Consolidated%20Special%20Conditions.pdf)

[Annex R - GT Standard Special Conditions - PART A Consolidated [PDF, 0.98MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20R%20-%20GT%20Standard%20Special%20Conditions%20-%20PART%20A%20Consolidated.pdf)

[Annex S - GT Standard Licence Conditions [PDF, 883.07KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20S%20-%20GT%20Standard%20Licence%20Conditions.pdf)

[Annex T - All Electricity Distribution Special Conditions [ZIP, 10.21MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20T%20-%20All%20Electricity%20Distribution%20Special%20Conditions.zip)

[Annex U - All other Gas Transporter Licence Special Conditions [ZIP, 6.92MB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20U%20-%20All%20other%20Gas%20Transporter%20Licence%20Special%20Conditions.zip)

[Annex V - Analytical Annex of Additional NESO Roles [PDF, 146.50KB]

](https://www.ofgem.gov.uk/sites/default/files/2024-03/Annex%20V%20-%20Analytical%20Annex%20of%20Additional%20NESO%20Roles_0.pdf)

Statutory consultation on the temporary facilitative licence condition to support the implementation of the Independent System Operator and Planner

Consultation

Statutory Consultation on a proposal to modify Special Condition 3.20 of the Gas Transporter Licence held by the Gas Distribution Networks

Consultation

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National Energy System Operator (NESO) licences and other impacted licences: statutory consultation