The budget value is commercially sensitive.

Tender description

The budget value is commercially sensitive. Lot 1: As part of the work to deliver net zero, BEIS is running a project to consider the future of system operation and wider governance in the energy sector. This includes creating a publicly-owned Independent System Operator and Planner (“ISOP”) from a combination of the Electricity System Operator (“ESO”), currently owned by National Grid plc, and the planning functions from the Gas System Operator (“GSO”), which are part of National Grid Gas currently owned by National Grid plc and in the process of being sold to a consortium of Macquarie Group Ltd and British Columbia Investment Management Corporation. BEIS set out this position in its response to a 2021 consultation (https://www.gov.uk/government/consultations/proposals-for-a-future-system-operator-role) and has introduced the Energy Bill (https://bills.parliament.uk/bills/3311) on 6 July 2022 to give the Government the power to enact these proposals. The Energy Bill will enable the transactions into Government ownership of the ESO and the planning functions of the GSO, as well as establish the ISOP. The transactions will be a key part of a complex project that will also include setting up governance for an HMG arm’s length body, an update of the energy codes and Ofgem updating the relevant licences to reflect the ISOP. BEIS is looking to procure corporate finance advisors to support the Department with the transfer of the ESO and gas functions into public ownership. The scope of work will include requirements regarding valuation, deal structuring, negotiations, transaction documentation and support for the Department in preparing internal decision-making papers. This is a great opportunity to support the delivery of a project with an important social value and we look forward to hearing from you to discuss further. Additional information: Evaluation criteria for the tender is being finalised, but is expected to require bidders to demonstrate relevant examples of experience working in regulated infrastructure M&A, advising clients on regulatory finance issues and working with Government on large and complex projects. It is expected to also ask bidders to demonstrate any relevant expertise of the energy sector.