Title page
Contents
General information 5
Why we are consulting 5
Consultation details 5
How to respond 6
Confidentiality and data protection 7
Quality assurance 7
Glossary 8
Executive Summary 10
Background 10
Ownership and Governance 10
Proposed ownership models 11
Public ownership 11
Industry ownership 11
Assessment of proposed ownership models 12
Temporary Fallback Option 12
Implementation 12
Assessment of key costs and risks 13
Next steps 13
1. Background 14
1.1. The roles, ownership, and governance of Elexon 14
1.1.1. Roles 14
1.1.2. Ownership and funding 14
1.1.3. Governance 15
1.2. Creation of the Future System Operator 15
1.3. Code Reform 16
1.4. Criteria 17
1.5. Scope of this consultation 17
2. Ownership models 19
2.1. Consideration of alternative options 19
2.2. Public Ownership 20
2.3. Industry ownership 20
2.4. Analysis of ownership models 23
2.5. Preferred position on ownership option 24
3. Consideration of a temporary fallback option 26
3.1. Necessity of fallback option 26
3.2. Consideration of potential temporary fallback options 26
3.2.1. Option 1: temporarily transfer Elexon into ownership of a single industry party 26
3.2.2. Option 2: temporarily transfer Elexon into public ownership as a separate entity from the FSO 27
3.2.3. Option 3: temporarily transfer Elexon into public ownership as a subsidiary of the FSO 27
3.3. Recommendation 27
4. Implementation 28
4.1. Implementation of public ownership option 28
4.2. Implementation of industry ownership option 29
5. Assessment of costs and benefits 32
6. Next steps 33
7. Consultation questions 34
Annex - Shareholder compositions of other relevant industry organisations 35