Ofgem launches consultation on system operator incentives

Ofgem has launched a consultation on the system operator (SO) incentives scheme. The regulator believes it needs to conduct a review of SO incentives to ensure they “reflect the changing nature” […]

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By Jacqueline Echevarria

Ofgem has launched a consultation on the system operator (SO) incentives scheme.

The regulator believes it needs to conduct a review of SO incentives to ensure they “reflect the changing nature” of the country’s electricity system.

The consultation offers options to be implemented from April 2017 including extending the current incentive scheme with limited changes, maintaining the same framework or not having any incentives at all.

The regulator stated it prefers to maintain the same incentive framework but to seek changes in a number of areas where there could be benefits to consumers.

It welcomes stakeholder’s views on which option it should pursue until the 31st of March 2017 when the current scheme ends.

It added: “We welcome views on this position and on the areas where we have identified potential changes before we issue our initial proposals on our approach to SO incentives from 2017 later this year.”