How we’re performing under NESO1
NESO1 is our first two-year Business Plan as NESO. It sets out the actions and outcomes we will deliver between April 2026 and March 2028 to support a secure, affordable and sustainable energy system. NESO1 builds on the progress made under RIIO-2 and marks the beginning of our long-term regulatory model as an independent, not‑for‑profit public corporation. This page explains how we are assessed, what we report, and how stakeholders can follow our progress.
As a not‑for‑profit public corporation, NESO is assessed through a reputational incentives framework. At the end of each performance year, Ofgem and an independent Performance Panel assess our delivery against the NESO1 Business Plan. While there are no financial rewards or penalties, Ofgem and the Independent Challenge Pane (ICP) assessment are published externally. Their assessment is formed of two parts:
- NESO’s achievement of Performance Outcomes
- NESO’s delivery of value for money
For each part of the assessment, NESO’s performance will be graded on a scale of ‘Exceptional’; ‘Strong’; ‘Satisfactory’; or ‘Poor’. Ofgem will then consider the two parts holistically to determine an overall assessment of NESO’s performance for the performance year using the same grading.
Performance Outcomes are a combination of NESO’s Performance Objectives and Ofgem’s Expectations as set out in their NESO1 Final Determinations.
Performance Objectives (POs) define the core outcomes we commit to deliver for the energy system. These cover areas such as operating an intelligent real-time grid, enabling clean and efficient markets and strengthening whole‑system resilience. Each PO includes Success Measures and Major Deliverables that demonstrate progress and ensure we remain accountable for the commitments made in the NESO1 Plan.
Reported Metrics
Reported Metrics (RMs) offer regular insight into operational trends, market activity, and system performance. They are published for transparency and to support stakeholder understanding of key indicators. Unlike Success Measures, Reported Metrics are not used directly in Ofgem’s performance scoring but remain essential for open and accountable reporting.
Value for Money
Every six months we will publish an update to our overall delivery of value for money. This will include the latest forecast of expenditure for the business plan period compared to our plan. We will also evidence how our delivery demonstrates value for money.
As part of the incentives scheme we publish a report each month on the 17th working day (with the exception of our end-year report). See below a summary of the requirements for our reporting:
| Monthly reports | Monthly | An update on monthly Reported Metrics. |
|---|---|---|
| Quarterly reports |
Q1: July Q3: January |
In addition to the above, quarterly reports provide an update on quarterly Reported Metrics and a progress update on our NESO1 Performance Outcomes. |
| Mid-year report | October | In addition to the above, mid-year reports provide an update on six-monthly Reported Metrics. We also publish evidence in relation to value for money and the results of our stakeholder survey. |
| End-year report | 30 April | In addition to the above, these reports provide an update on annual Reported Metrics. |