UK Government to Create New Body to Oversee Entire Energy System

By Jaime Llinares Taboada

The U.K. government said Wednesday that it will create a new system operator to oversee the country's entire energy system.

The Future System Operator will look at Great Britain's energy system as a whole, integrating existing networks with new technologies such as hydrogen, the government said.

The body will be founded on the existing capabilities of current electricity-system operator National Grid ESO, and on National Grid Gas where appropriate.

The FSO will work to balance the electricity systems, ensure energy resilience and security, and provide strategic oversight of the system, the government said.

National Grid ESO said in a statement that it welcomes the announcement and that it will work with all parties to enable a smooth and successful transition.

"A fully independent system operator will help to transform Great Britain's energy system and cut customers' energy bills. Critically, the FSO will ensure that we will build a smart, efficient and flexible system that will mean that Britain moves to a secure low carbon and low-cost system," Jonathan Brearley, chief executive of energy regulator Ofgem, said.

Shares in National Grid PLC at 0927 GMT were up 0.04% at 1,211.5 pence.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

April 06, 2022 06:01 ET (10:01 GMT)

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