Source · Select Committees · Business and Trade Committee
Recommendation 62
62
Accepted
Grant Future System Operator sufficient powers and resources, including clear net zero directive.
Recommendation
The Future System Operator (FSO) should be granted sufficient powers and resources to effectively plan and co-ordinate the transformation of the electricity system. The FSO should be given a clear net zero directive within its governance arrangements. In response to this report, we ask that the Government confirms whether it is on track to set up the FSO by or in 2024 and outlines its plans for the division of institutional responsibilities between Ministers, Ofgem and the FSO. The FSO should engage with Decarbonisation of the power sector 111 the Energy Security and Net Zero Committee on the progress it is making to deliver a decarbonised power system by 2035 and proactively share key decisions, performance issues and relevant policy concerns. (Paragraph 244)
Government Response Summary
The government confirms the FSO will have a net zero objective enshrined in the Energy Bill, aims for the FSO to be operational in 2024, and will publish a framework outlining institutional responsibilities between Ministers, Ofgem, and the FSO. It also notes the select committee will be able to invite FSO leadership to sessions.
Government Response
Accepted
HM Government
Accepted
158. The FSO will maintain the UK’s energy security and operate at the cutting edge of net zero with a long-term ambitious vision. The Energy Bill imposes a duty on the FSO to carry out its functions in a way that it considers best calculated to promote the net zero objective. 159. Progress is reliant on several factors, including timings of the including timings of the Energy Bill and delivery by key parties. The aim is for the FSO to be operational in 2024. 160. As part of the FSO’s establishment, the Government will create a framework agreement to outline the primary aspects of FSO’s relationships with government. This will include clear articulation of the roles of Ministers, Ofgem and the FSO, and will be made public. 161. The ESO already makes available public information on the Network Options Assessment and publishes a wide range of documentation on future challenges. The select committee will be able to invite the CEO and Chair of the FSO to attend their sessions.