NESO regulatory framework: decision on associated documents for the BP3 period

Decision on NESO’s performance incentives framework for BP3
National Energy System Operator (NESO) licences and other impacted licences: statutory consultation
Response to statutory consultation on National Energy System Operator licences and other impacted licences

In February 2024, we consulted on two Associated Documents (ADs) to the Electricity System Operator and Gas System Planner licences held by National Energy System Operator’s (NESO) for the RIIO-2 Business Plan 3 (BP3) period. These documents are:

The NESO Licence Expectations Document (previously called the Roles Guidance)
The NESO Performance Arrangements Governance Document

These ADs support NESO’s regulatory framework. They provide further details on the processes used to assess NESO’s performance, as well as the behaviours we expect from NESO in relation to its licence conditions.

Our decision

We have considered all the responses and have made our decision on the final versions of the ADs for the BP3 period. We have also issued a direction under NESO’s licences to issue the two ADs. These documents apply from 1 April 2025.

Our decision letter and Response Log explain the changes we have made to these ADs since our February consultation, and our response to stakeholder comments.

We have included both clean and tracked versions of these documents below for transparency.