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Ofgem issues decision on FSO Transition Funding Governance Document

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On Monday 11 December, Ofgem published the Future Systems Operator (FSO) Transition Funding Governance document. Following responses to the statutory consultation, several amendments to the proposed text of the document were made. The document sets out how arrangements associated with funding the FSO Transition Activities through the licensee’s transmission licence must operate and provides a reporting framework. It also details the requirements for the FSO Day 1 Delivery Schedule, an overview of mandatory requirements for the FSO Transition Intragroup Contract and explains the FSO National Grid Cost Recovery Principles. Ofgem is publishing the document in line with the National Grid Electricity System Operator’s licence. The regulator intends to publish a direction on 13 December 2023, formally issuing the FSO Transition Funding Governance Document.