Part 5: Independent System Operator and Planner Section 163: Duty to promote particular objectives
Section 163 sets out the ISOP’s main objectives. Three objectives are listed and the ISOP is required to carry out its functions in a way it considers will best achieve those objectives.
	In the Climate Change Act 2008 a duty is imposed on the Secretary of State to ensure that the net UK carbon account for the year 2050 is at least 100% lower than the 1990 baseline (‘net zero’). The Secretary of State also has a duty under this Act to ensure that the net UK carbon account for a budgetary period does not exceed the carbon budget. The ‘net-zero objective’ in this Act imposes a duty on the ISOP to carry out its functions in a way that it considers is best calculated to promote the net zero objective, by enabling the Secretary of State to meet net zero and to not exceed the carbon budgets. While not directly building renewable energy generation assets or making final decisions on future generation mixes, the ISOP is expected during the course of operating, planning and coordinating the system to drive net zero outcomes by proactively identifying and creating opportunities to facilitate the transition.
	The ‘security of supply’ objective imposes a duty on the ISOP to carry out its functions in a way that it considers best calculated to ensure the security of supply of electricity and gas to existing and future consumers. Security of supply refers to supply meeting demand and the maintaining of resilience in the system. This duty could cover putting in place and maintaining electricity system restoration plans and arrangements if security of supply is compromised. This responsibility could also involve seeking continuity of electricity to end users, through maintaining physical and cyber resilient systems, and ensuring sufficient electricity capacity to meet demand.
	The ‘efficiency and economy’ objective imposes a duty on the ISOP to carry out its functions in a way that it considers best calculated to promote a coordinated electricity and gas system that operates efficiently and economically. This objective must also be applied by the ISOP with regard to the activities carried out by those engaged in those ‘relevant activities’ defined in subsections (5) a, b and ba.
	Subsections (5), (6) and (7) define 'relevant activity' in a way that, broadly speaking, includes any activity that is licensable under the Electricity Act 1989 or Gas Act 1986, or any other business activity in the energy supply chain. Examples might include the production of hydrogen, the supply of heat, CCUS or other activities designed to reduce energy sector greenhouse gas emissions, or the provision of energy-related metering and data services but not including non-electricity or gas connected uses of hydrocarbons (e.g., in petrochemicals). Consumers passively consuming energy are not caught by this definition.
	Although some of the ISOP's functions may be more focused on matters relating to one or other of these three objectives, the ISOP will need to have regard to all of them wherever they are relevant – if necessary, making appropriate trade-offs where they may conflict. The balance of trade offs will be for the ISOP to determine, although it must have regard to the priorities in the Strategic Policy Statement for energy once this is designated for the ISOP (see further Section 165).