The UK Government and Ofgem have detailed the upcoming changes to the ownership structure of Elexon, a company responsible for managing the Balancing and Settlement Code (BSC) in the electricity market.
These changes will involve modifying electricity supply and generation licences to allow the Secretary of State and the Gas and Electricity Markets Authority (GEMA) to direct certain parties to hold shares in Elexon.
The modifications will be made under the Energy Act 2023, depending on the decision to proceed with the establishment of the National Energy System Operator (NESO).
The adjustments to the BSC will support the implementation of these new ownership arrangements.
The response from the government and Ofgem comes after a consultation earlier this year, which received feedback from a variety of industry participants, including generators and suppliers.
The majority of respondents were in favour of the proposed changes, although some sought further clarification on specific aspects of the policy.
Once a decision is made, a separate notice will be published detailing the final changes to licences and codes related to Elexon’s future ownership.
These changes are a direct consequence of creating NESO as a publicly owned entity, which necessitates a review of Elexon’s ownership, currently held by National Grid Electricity System Operator Ltd.
The next steps include finalising legal arrangements, such as transferring shares from National Grid to new shareholders, pending the Secretary of State’s decision to proceed with NESO’s establishment.
