Government aims to cut energy bills with National Energy System Operator

• National Energy System Operator is designed to help support the UK’s energy security
• NESO will start work from 1 October
• It has been established through powers under the Energy Act 2023

The government has launched National Energy System Operator (NESO), a publicly-owned company designed to help support the UK’s energy security, lower bills and accelerate the government’s clean power strategy.

NESO will help connect new generation projects with the electricity grid and work alongside Great British Energy to deploy renewable energy. 

According to the Department for Energy Security and Net Zero, the benefit of NESO is that  bill payers will be able to “reap the benefits of clean, secure and homegrown power”. 

The launch comes as the government reached an agreement with National Grid to acquire the Electricity System Operator, which will also be transferred to public ownership. 

NESO will start work from 1 October and be chaired by former E.ON CEO Dr Paul Golby, with Fintan Slye as the chief executive officer. 

Ed Miliband, energy secretary, said: “Today marks a milestone for Britain’s energy system as we bring the system operator into public ownership to provide impartial, whole-system expertise on building a network that is fit for the future. 

“The new NESO has a huge role to play in delivering our mission to make Britain a clean energy superpower. We need to move Britain off expensive, insecure fossil fuel markets, and onto clean, cheap homegrown power we control. 

“This is how we reduce bills in the long-term, strengthen our energy independence and support skills jobs across the country.” 

NESO aims to fill a gap to offer a single body that is responsible for the strategic planning and design of the UK’s electricity and gas networks, and will support the government’s net zero goals by 2030. 

It has been established through powers under the Energy Act 2023 and will take a cross-sector approach to planning the UK’s energy system in the best interests of the British public. 

According to the Department of Energy Security and Net Zero, NESO will “look across electricity, gas and hydrogen, as well as renewable generation, storage and other emerging technologies, like carbon capture usage and storage”. 

Jonathan Brearley, chief executive, Ofgem, said: “The setup of NESO is a huge step forward in ending Britain’s exposure to volatile energy markets and getting clean, renewable power to every single one of us. Its work is central to long-term energy security and to running the system day-to-day.”