Regulator seeks to revise system operator incentives
Ofgem has commenced a “fundamental review” of electricity System Operator (SO) incentives to ensure they reflect the changing nature of the electricity system. It opened a consultation on Thursday 4 August, seeking opinions on an interim scheme to succeed the current one when it ends on 31 March next year, in anticipation of a new framework being ready in spring or summer 2018. A range of options are under consideration for the interim period: having no incentives; extending the current incentive scheme with limited changes; or Ofgem’s preferred option of maintaining the same incentive framework but seeking improvements from the 2015-17 scheme. Views are welcomed until 15 September.