Policy background Part 5: Independent System Operator and Planner
The Government committed, in the Energy White Paper 2020 10 and Future Systems Operator consultation response 11 , to update the governance of the energy system to reflect the ambition required to build a net zero energy system. There are many plausible paths to a fully decarbonised system and each of them require significant investment in infrastructure and innovation. This creates an ever-greater requirement for expert and coordinated strategic advice and recommendations.
	This Act makes provision for the establishment of an Independent System Operator and Planner (ISOP) within the electricity and gas supply sectors. The ISOP is to be a public sector body, with operational independence from the Government, with responsibilities for planning the development of the electricity and gas transmission systems and operation of the electricity transmission system. This body will also take on a range of additional net zero focused roles, helping drive a more open, flexible and efficient system, and is expected to result in a net saving on energy bills.
	Many of the functions that the ISOP will undertake are currently carried out by licensed operators owned by National Grid plc. Provision is made for the transfer of the whole or parts of these operators out of their current ownership as part of the establishment of the ISOP, with the overall aim of increasing independence and removing potential conflicts of interest.
	The Act also makes provision for conferring on the ISOP duties, powers and functions, and enabling its regulation (by licence) by the Gas and Electricity Markets Authority (GEMA).