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

The Office of Gas and Electricity Markets (Ofgem) and the Department for Energy Security and Net Zero (DESNZ) jointly decided to proceed with, and are in the process of, creating a new Independent System Operator and Planner (ISOP). To support the implementation of ISOP, we are proposing to introduce a temporary facilitative licence condition.

We intend to add the temporary facilitative conditions to all standard licence conditions, as well as Smart Meter Communication licence, in order to prepare for any potential scenario of cooperation and facilitation that may be required. These proposed modifications oblige licensees to cooperate in, and to not frustrate, the transition to the ISOP if required. The licensees must take all reasonable steps to enable the ISOP Implementation Objectives are met and give full effect to any ISOP Change Programme.

We are consulting on modifications to the following licences impacted by the designation of the ISOP:

• all holders of an electricity distribution licence
• all holders of an electricity transmission licence
• all holders of an electricity offshore transmission licence
• all holders of an electricity interconnector licence
• all holders of an electricity supply licence
• all holders of an electricity generation licence
• all holders of a gas transporter licence
• all holders of a gas interconnector licence
• all holders of a gas supplier licence
• all holders of a gas shipper licence
• the holder of a smart meter communication licence

We are proposing these modifications as part of the joint NESO implementation programme with DESNZ. This consultation period is open until 10 May 2024. Responses should be sent to [email protected] and clearly marked where considered to be confidential.

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