NESO Licence Expectations - Condition C1 Guidance
Summary
Ofgem published guidance on Condition C1 requirements for the National Energy System Operator (NESO), covering both Electricity System Operator and Gas System Planner licences. The guidance clarifies minimum performance outcomes NESO must achieve and explains when remediation plans are required to address material performance concerns. This replaces informal guidance with structured expectations for compliance monitoring.
What changed
Ofgem issued the NESO Licence Expectations Document providing formal guidance on Condition C1 of NESO's Electricity System Operator Licence and Gas System Planner Licence. Condition C1 sets out general minimum outcomes expected of NESO, including requirements to produce remediation plans when material performance concerns arise. The guidance aligns expectations on how these requirements should be interpreted.
NESO should review the guidance to understand Ofgem's compliance expectations under Condition C1. If performance concerns are identified, NESO must prepare a remediation plan as required by Condition C1. Energy companies operating alongside NESO in electricity and gas markets may wish to understand these expectations as they affect system operation and planning.
What to do next
- Review the NESO Licence Expectations Document to understand Ofgem's compliance expectations
- Assess whether current operations align with Condition C1 minimum outcome expectations
- Prepare remediation plan processes in case material performance concerns arise
Source document (simplified)
NESO Licence Expectations Document
Publication type: Guidance Publication date:
31 March 2026
Topic: National Energy System Operator (NESO) Print this page
Related links
Implementation of NESO's enduring regulatory framework
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- Guidance for NESO to support compliance with condition C1 of their Electricity System Operator and Gas System Planner licences.
Details
Condition C1 of National Energy System Operator (NESO)’s Electricity System Operator Licence and Gas System Planner Licence sets out general minimum outcomes we expect NESO to achieve. It also includes requirements on NESO to produce a remediation plan when necessary to address a material performance concern.
The NESO Licence Expectations Document provides further guidance in relation to the requirements in Condition C1. This is to support understanding of the requirements in Condition C1 and align expectations on some important ways in which they should be interpreted.
Documents
NESO Licence Expectations Document [PDF, 355.43KB] Print this page
Related links
Implementation of NESO's enduring regulatory framework
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