Consumer interests sacrificed for energy control room’s ‘stubborn traditions’

• National Energy System Operator (NESO) exposed by Association for Decentralised Energy (ADE) report
• Outdated practices threaten UK’s path to Clean Power by 2030
• Current structures biased against crucial component that could save £14.1bn a year

The Association for Decentralised Energy (ADE) has today issued a scathing critique of the emerging National Energy System Operator (NESO), which exposes the deep flaws in the system’s readiness to meet the needs of public. As part of the ADE’s ’Empowering Energy Demand’ campaign, the report warns that the energy revolution’s potential is being undermined by entrenched practices that threaten the UK's path to Clean Power by 2030.

The report has determined that NESO operates with outdated practices inherited from the ESO (Electricity System Operator). The trade association argues that such a lack of adaptation stifles innovation and prevents consumers from fully benefiting from the clean energy future. In stark terms, the report emphasises that the system remains skewed towards large generators, with consumer benefits taking a back seat.

Analysis in the report shows that current market structures are biased against demand-side flexibility, which is a crucial component in balancing renewable generation and could save the country £14.1 billion per year by 2040. The ADE highlights that NESO’s design of ancillary services excludes small, flexible technologies, delaying the integration of low-carbon assets. The report further argues consumer behaviour and the potential of demand-side flexibility are largely excluded from NESO’s markets. Representing the opinions of over 150 organisations from the energy sector, the ADE claims that this short-sightedness will result in higher costs for consumers and slow the pace of decarbonisation.

Caroline Bragg, CEO of the ADE, did not mince words: "This report lays bare the uncomfortable truth: NESO is not just behind schedule; entrenched practices are undermining the very future it is supposed to protect. We need urgent, radical reform to put consumers at the heart of our energy strategy.

“Parliament, Government, and Ofgem must act swiftly to overhaul NESO’s operational framework. Among the key recommendations are a formal parliamentary inquiry into NESO’s performance to ensure it can deliver Clean Power by 2030. Government needs to give clear directives for NESO to inspire cultural transformation and draw attention to consumer-driven demand-side participation.”

For further comment or interview, please contact external.affairs@theade.co.uk.