Change and Transformation in the Public Sector
Decarbonising the energy system is the challenge of our generation. EY worked with the National Energy System Operator (NESO) on a monumental public sector transformation programme to safeguard 67 million people’s energy needs and deliver significant consumer value – while positioning NESO as a global leader in the energy transition.
Decarbonising the energy system is the challenge of our generation – one the National Energy System Operator (NESO) is at the heart of achieving in a fair and affordable way for Great Britain. Established as an independent organisation in October 2024, it set a groundbreaking precedent in the energy sector. No other country has a whole-system operator supporting government and the regulator in tackling this challenge. This monumental transformation will safeguard 67 million people’s energy needs, delivering significant consumer value, and positions NESO as a global leader in the energy transition.
The project objectives were:
- Design and implement a new operating model (including a world-first for whole energy system planning).
- Recruit and onboard talent.
- Foster stakeholder engagement (including government bodies and industry partners).
- Embed sustainable change.
The challenges were numerous. They included overhauling operating and governance structures and workforce capabilities. We had to ensure a cultural shift – addressing fatigue and employee uncertainty – and develop a streamlined communication strategy based on clarity of messaging and centralised information. We had to quickly build consensus across government and regulatory bodies, industry partners and internal teams, fostering open dialogue and collaboration through workshops and establishing alignment behind a single vision and direction. All this, while maintaining reliable energy supply across Great Britain.
With the global EY organisation as the Future System Operator (FSO) programme partner, the ESO’s separation from National Grid plc ensured a seamless transition, recruiting over 1,000 employees and aligning across government, the regulator and industry to successfully design and implement new industry roles over a three-year period. The partnership was based on a culture of trust and innovation, enabling NESO to navigate the intricacies of becoming an independent public corporation.
The EY team brought the skills and expertise, from energy sector insights and best practice to effective change management strategies, along with experience from across government, the regulator and industry to establish the optimal governance and risk management frameworks. This facilitated decision making, defined clear roles and responsibilities and enabled early interventions to manage risk.
The EY team committed to embedding sustainable change within NESO, co-creating a vision – defining a ‘North Star’ and ‘Transformation Roadmap’ for NESO’s future evolution – empowering it to operate as a whole-system operator, making the strategic decisions required to influence the energy landscape for decades. Our proactive stakeholder engagement and tailored methodologies enabled NESO to fulfil its new obligations while enhancing energy resilience and security.
The transition and transformation exemplify how a collaborative partnership can drive long-lasting, impactful transformation in the public sector, whilst paving the way for a cleaner, more resilient future. This first-of-a-kind project sets a benchmark for energy initiatives worldwide, exemplifying our dedication to delivering exceptional outcomes that resonate with societal needs and drive systemic change.
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