Consultation outcome: The future ownership of
Elexon
From:
Department for Energy
Security and Net Zero and Department for Business,
Energy & Industrial Strategy
Published
14 July 2022
Last updated
23 March 2023 — See all updates
This consultation has concluded
Download the full outcome
Elexon Ownership: government and
Ofgem response
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KB, 28 pages
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Detail of outcome
The Elexon Ownership consultation set out the rationale for
considering the future ownership of Elexon due to the
establishment of the Future System Operator. It sets out the
criteria the decision will be taken against, as well as
government and Ofgem’s
preferences. The consultation was published in June 2022 and
closed in September 2022.
The government / Ofgem’s response
to this consultation sets out a summary of responses, and our key
decisions, including for Elexon to remain in industry ownership.
The key decisions taken are as follows:
- Elexon will remain in industry ownership
- the 13 largest energy suppliers and generators will be
mandated to take on shares in Elexon
- the temporary fallback option whereby Elexon will become a
public body is retained
- these policies will be implemented through license and code
changes
The response also sets out the analysis to reach this position,
as well as the next steps towards implementation.
Detail of feedback received
We received 28 responses to the consultation from a range of
organisations:
- primarily from the energy industry - generators, suppliers,
traders, system bodies
- trade organisations
- consumer interest groups
During the consultation period we also held a webinar and
question and answer session, and several small sessions for
particular groups of industry parties.
Original consultation Summary
We are seeking views on proposals for the future ownership of
Elexon, once the Future System Operator has been established.
This consultation ran from
9am on 14 June 2022 to 11:45pm on 22 September 2022
Consultation description
BEIS and
Ofgem are jointly consulting on proposals for the future
ownership of Elexon.
Elexon is a wholly owned but operationally independent subsidiary
of National Grid Energy System Operator (NGESO). It is
governed by its own Board and by the Balancing and Settlement
Code (BSC)
Panel (which is made up of industry, consumer, and independent
experts). Elexon plays a key role in the electricity market, with
its main roles being to administer the BSC and to carry out
the settlement of imbalances between predicted and actual
electricity generation and use.
It is the future purchase of NGESO to
create the Future System Operator (FSO) that necessitates
consideration of the ownership of Elexon. To ascertain what the
best ownership model is, we need to carry out a consultation.
This document follows on from the consultation regarding
the FSO, and
the recent response, which included a question concerning Elexon.
The document sets out criteria against which ownership options
are compared, and the 2 ownership options that meet the criteria,
public ownership and industry ownership. We also consider:
-
government and Ofgem’s preferred ownership option for Elexon
-
a temporary fallback option in the case of the industry
ownership option being chosen, but where implementation of it
could cause a delay to the FSO being established
-
potential combinations of BSC parties which
could own Elexon under the industry ownership option
Proposed license and code changes associated with each of the two
ownership options.
Read the BEIS consultation
privacy notice.
Documents
The future ownership of
Elexon
HTML
The future ownership of
Elexon
PDF, 443
KB, 37 pages
