NESO appoints new Non-Executive Director and Chair of the…
20 Dec 2024 - 2 minute read
We’ve published our RIIO-2 Business Plan 3 for the period April 2025 to March 2026 (BP3). This is our first business plan as NESO and the final plan for the RIIO-2 period.
The energy system is the foundation of a thriving modern society in Great Britain. As the system continues to undergo rapid and fundamental transition, our focus remains on promoting net zero, access to affordable energy and ensuring security of supply for the nation.
Our business plan identifies eight Performance Objectives that ensure we deliver value for consumers and fulfil our purpose and vision. These objectives set out below, serve as guiding principles for our expanded roles and responsibilities as we move towards clean power by 2030 and aim for net zero emissions by 2050.
Whole Energy |
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Strategic Whole Energy Plans We’ll establish our capabilities, and the foundations and methodologies to deliver national and regional strategic whole energy plans. |
Enhanced Sector Digitalisation and Data Sharing By working with the energy sector, we’ll develop an aligned and interoperable digital ecosystem driving industry digitalisation collaboration utilising innovation, underpinned by transparent data sharing and access. |
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Fit-for-Purpose Markets We’ll support the government in making informed decisions on policy and market reform across the whole system. We will also continue to reform our own markets to level the playing field and deliver value to consumers. |
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Secure and Resilient Energy Systems We’ll improve whole energy system emergency preparedness and resilience. We will ensure we are on track to have the capabilities and requirements in place and facilitate industry readiness to meet the Electricity System Restoration Standard. |
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Separated NESO Systems, Processes and Services We’ll transition remaining systems, process and services from National Grid to NESO ownership to enhance our capabilities and establish our autonomy and full independence. |
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Clean Power 2030 Implementation Play a pivotal role in securing clean power for Great Britain by 2030 on the path to net zero by 2050. Building on our 2024 advice to government on pathways to a clean, secure, operable and deliverable electricity system, we will move to action and implementation in line with the government’s CP2030 action plan. |
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Electricity |
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Operating the Electricity System Transparently operate a safe, reliable and efficient system throughout BP3, while continuing to transform the capabilities of our people, processes and systems to enable secure zero-carbon operation of the system by the end of 2025 |
Connections Reform Drive delivery and implementation of a reformed connections process that enables projects needed for 2030 and beyond to connect in a timely and coordinated manner. |
The challenges ahead cannot be underestimated and include addressing the connections queue, reforming energy markets and embracing a digital future. However, with meaningful collaboration, we' ‘e confident that we can achieve our shared goals.
BP3 has been developed using feedback gathered across BP2 (through a range of BAU engagement channels), as well as any views gathered on our new responsibilities as NESO. We’ve also engaged regularly with our Independent Stakeholder Group (ISG) who provide scrutiny and challenge on the contents of our plan.
The feedback we received through the draft BP3 consultation has shaped the final version of BP3, with respondents supporting the ambition and content of our proposed BP3 performance objectives.
There were some themes for improvement in both industry and Ofgem feedback, including a need for more detail on our BP3 costs, more specific success measures under the Performance Objectives, transparency over how we will engage with stakeholders more consistently in BP3 and how we will make sure our ambitious plans are deliverable. See a detailed view of how stakeholder feedback has helped develop BP3 in the stakeholder annex.
We’ve worked to address as much of the feedback as possible and have redrafted some areas of the document to include more detail. We’ve also published a separate more detailed cost annex alongside BP3. We’ll continue to listen to and address stakeholder feedback as we deliver BP3 and as we work with Ofgem to design our future regulatory framework.
Ofgem will review and assess BP3 and its supplementary annexes before publishing their Draft Determinations on BP3 in March 2025, which will set out their initial view of the plan. NESO and industry can then respond before Ofgem publish their Final Determinations in Spring 2025.
We're continuing to engage with Ofgem on the performance framework for the BP3 period. Ofgem are expected to publish their consultation on the BP3 performance framework reporting requirements and assessment methodology in early February.
In parallel, we're beginning talks with Ofgem about our regulatory and performance framework after the RIIO-2 price control period ends in March 2026.
If you have any further questions about BP3, contact us at [email protected].