The UK is set to welcome a major overhaul in its energy management with the launch of the National Energy System Operator (NESO) on 1 October. This new publicly owned body will integrate the planning of electricity and gas networks, aiming to support energy security, reduce long-term bills, and accelerate the transition to clean power.
The establishment of NESO comes as the government finalises its acquisition of the Electricity System Operator from National Grid, bringing it under public ownership. The move is intended to provide a unified approach to overseeing the country’s energy infrastructure, which has previously been fragmented between electricity and gas planning.
NESO will be chaired by Dr Paul Golby, former CEO of E.ON, with Fintan Slye serving as Chief Executive Officer. The organisation is expected to play a critical role in connecting new energy generation projects to the grid, collaborating with Great British Energy to expand the use of renewable sources.
Energy Secretary Ed Miliband emphasised the significance of NESO, stating: “Today marks a milestone for Britain’s energy system. By bringing the system operator into public ownership, we ensure impartial expertise in building a network that is fit for the future. This move will help us transition away from expensive fossil fuels towards clean, homegrown power, which will reduce bills, strengthen energy independence, and support jobs.”
Currently, there is no single entity responsible for strategic oversight of both electricity and gas networks. NESO aims to bridge this gap by offering independent oversight and integrated planning across all of Britain’s energy networks. This approach is anticipated to boost investor confidence in developing new infrastructure and support the government’s goal of achieving net zero emissions by 2030.
The government’s Mission Control, led by Chris Stark, has tasked NESO with advising on strategies to meet the 2030 clean power target. This new body will also oversee recent initiatives such as the launch of Great British Energy, the lifting of England’s onshore wind ban, and the approval of major solar projects.
John Pettigrew, Chief Executive of National Grid, expressed enthusiasm for the collaboration: “We look forward to working with NESO to drive the UK’s energy transition forward, accelerating the decarbonisation of our energy system.”
Paul Golby, NESO’s Chair, described the launch as a pivotal moment, highlighting that NESO will bring crucial roles under one roof. “NESO will manage system planning, market operations, and ensure that our energy infrastructure is secure and future-proof,” Golby said.
Established under the Energy Act 2023, NESO will adopt a cross-sector approach to energy planning, incorporating electricity, gas, hydrogen, and emerging technologies like carbon capture. The organisation’s role will include mapping future energy networks, advising the government and Ofgem on infrastructure decisions, and supporting the UK’s net zero objectives.
Fintan Slye, CEO of NESO, welcomed the announcement: “We are excited to take this bold step forward in unifying and optimising our national energy approach to deliver a clean, secure, and affordable energy system.”
Ofgem Chief Executive Jonathan Brearley also praised the development: “The setup of NESO is a significant step towards ending Britain’s exposure to volatile energy markets and ensuring clean power reaches everyone.”