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UK’s energy regulator Ofgem has released the results of its consultation on the future ownership of Elexon, the company responsible for managing the electricity balancing and settlement system.
Following consultation in July 2022, Ofgem and the government confirmed the retention of Elexon in industry ownership and the transfer of shares to 13 licensed Balancing and Settlement Code (BSC) funding parties with more than a 2% funding share as of 1st January 2023.
The temporary fallback option of Elexon becoming a public body will also be retained, with the policies to be implemented through licence and code changes.
Last year, officials explained that as the creation of the Future System Operator as a public corporation moved forward, the future ownership of Elexon Limited, a subsidiary of National Grid Electricity System Operator (NGESO), was under consideration.
Although NGESO owns all of Elexon’s shares, Elexon is financially and operationally independent from its parent company, with its own board and control by the BSC panel, leading to different considerations for its future ownership.
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