What is NESO?

The National Energy System Operator (“NESO”) is the independent gas and electricity system operator and planner for Great Britain’s energy system. 

It came into existence on 1 October 2024, when the Secretary of State for the Department for Energy Security and Net Zero ("DESNZ") designated National Energy System Operator Limited as the Independent System Operator and Planner. It was established following the government’s acquisition of the Electricity System Operator from National Grid, bringing it into public ownership. 

As a private company limited by shares, NESO is governed by the Companies Act 2006, in addition to sectoral energy regulation, and operates within a broad governance framework set out in the NESO Framework Document agreed between NESO and DESNZ. It is operationally independent, though accountable to the Secretary of State as shareholder. 

NESO must carry out its statutory functions in a way which promotes net zero, security of supply and efficiency and economy. It must also have regard to designated strategic plans, the first of which is the government's Clean Power 2030 Action Plan.

Our article explores NESO's role, duties and licences in more detail, providing a useful refresher of its function and impact.