Source · Select Committees · Environmental Audit Committee
Recommendation 48
48
Accepted in Part
Paragraph: 163
Seek regular independent appraisal of NESO’s role in regional energy system planning
Recommendation
The incipient role of the NESO in local energy planning ought to be subject to periodic review to ensure that its engagement is appropriate. We recommend that the NESO seek regular independent appraisal of its role in regional energy system planning to ensure that it is adding value to regional network development.
Government Response Summary
The government states that Ofgem will provide oversight of NESO's delivery and that regional Strategic Boards and the price control process will serve as appraisal mechanisms, but explicitly notes that Ofgem has not set out plans for additional independent assessment of NESO’s role.
Paragraph Reference:
163
Government Response
Accepted in Part
HM Government
Accepted in Part
Ofgem is responsible for setting the regulatory framework for NESO to deliver the Regional Energy Strategic Plan (RESP) and will provide enduring oversight and regulation of NESO’s delivery. Ofgem is currently in the policy design phase of the RESP and on 9 October closed its consultation on the framework for regional governance arrangements. The consultation proposes a Strategic Board in each region, comprising local and devolved government and network company representatives. These boards will facilitate transparency, heighten visibility of regional priorities and provide oversight of the RESP development, thereby providing appraisal of NESO in its role in regional energy system planning and ensuring value is added to regional network development. The RESP is expected to provide inputs to network companies’ business plans, which Ofgem will sign-off as part of the price control process, thereby representing a further appraisal mechanism. Ofgem have not set out plans for additional independent assessment of NESO’s role.