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Ofgem issues consultation on draft amendments to FSO impacted licences

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On Thursday 14 December, Ofgem published a consultation on draft amendments to impacted licences following the creation of the Future System Operator (FSO). The FSO will have two licences: an Electricity System Operator (ESO) licence and a Gas System Planner (GSP) licence. Following the new responsibilities and creation of FSO licences, Ofgem anticipates modifications to the following licences will be required: the Electricity Transmission licence, National Grid Electricity Transmission special conditions, Scottish Power Transmission and Scottish Hydro Electric Transmission special conditions. Additionally, amendments will be made to the structure of the electricity transmission licence to accommodate for the FSO taking all existing roles of the ESO. As a result, Ofgem proposes to remove the ESO’s existing special conditions and move these licence conditions to the FSO’s new licence, with the removal of some special conditions that are no longer relevant. Modifications will also be made to gas transmission standard special conditions to complement changes to other licence conditions for the FSO’s new GSP licence as part of its implementation. The regulator also proposes changes to the National Gas Transmission (NGT) special conditions to support the FSO’s gas strategic planning process, as well as changes across supply, transmission, and distribution licences. Responses are requested by 19 January 2024, with Ofgem aiming to publish a statutory consultation on the final amendments in 2024.