Ofgem recommends separating National Grid

Ofgem has recommended an independent body to lead the path to net-zero, fully separating out running the electricity system from National Grid.

The body is proposed to be fully separated from National Grid following commitments to a review by the Government, and Ofgem, working with Government od this, has estimated that an independent body with new responsibilities for running the electricity system could save consumers £0.4 - £4.8 billion between 2022 and 2050.

New responsibilities would include taking a more active role in designing and planning new grid infrastructure and providing independent advice to the Government on how best to hit its target of net-zero emissions by 2050.

This body, or Independent System Operator, would be need to be fully separated from National Grid, which also owns the electricity transmission network, to avoid any perceived or real potential conflict of interest. In 2019 a legally separate function was created within National Grid to manage the electricity system to help avoid this, but Ofgem is recommending full separation. Full separation would help ensure future decisions on how to manage the energy system are taken in the interests of consumers, helping to keep costs as low as possible.

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