SR Response: Implementation of NESO's enduring regulatory framework

On December 11, Ofgem published its consultation on the detailed implementation of its August 2025 policy decision on NESO’s enduring regulatory framework. This includes Ofgem's proposed modifications to NESO’s ESO licence.

Ofgem was particularly welcoming of views on its approach to:

• Setting clearer minimum standards for NESO
• Setting new requirements on performance-related pay for senior staff
• Implementing the Independent Challenge Panel
• Clarifying and improving NESO’s performance assessment process
• Streamlining the processes for cost and financial reporting

Ofgem intends to make its decision in March 2026, with the changes coming into effect from April 1, 2026.