Corporate report

Oil and Gas Authority: public body review outcome

Published 22 June 2023

This was published under the 2022 to 2024 Sunak Conservative government

© Crown copyright 2023

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The Department for Business, Energy and Industrial Strategy (BEIS) completed a review of the North Sea Transition Authority (NSTA). The review was part of the government’s Public Bodies Review Programme. It was started in July 2022 and concluded in September 2022. The NSTA is now under the sponsorship of the Department for Energy Security and Net Zero (DESNZ).

1. Background of the NSTA

The NSTA is responsible for regulating and influencing the oil, gas and carbon storage industries. It seeks to maximise the economic recovery of the UK’s oil and gas resources and holds industry to account for halving upstream emissions by 2030.

The legislative framework for the NSTA is contained within the Energy Act 2016. It also requires the relevant Secretary of State to review its performance every 3 years.

2. Purpose of the review

The review aimed to ensure that the NSTA is:

  • delivering with a clear purpose which remains relevant and is appropriately classified;
  • on track to be effective, efficient and aligned to the government’s priorities;
  • well governed and properly accountable for what it does.

3. Recommendations and conclusions

A stage 1 review concluded that the NSTA is in good health. It has plans and processes in place to meet minimum requirements for an arm’s length body (ALB).

A total of 4 recommendations were identified, to improve efficiency, governance and accountability processes. The recommendations aim to ensure that the NSTA and DESNZ continue to maintain a strong sponsorship arrangement.

This stage 1 review did not indicate the need for a full-scale review of the NSTA at this time.

3.1 Efficiency

1. The policy sponsor team and the NSTA to consider adoption of the Shared Services Strategy as and when current existing systems come to an end, and assess if the strategy on offer is able to meet the organisation’s requisite service needs.

3.2 Governance

2. The updated framework document be expedited for publication to ensure it is completed before the end of March 2023.

3. Policy Directors to strengthen the arrangements for how DESNZ monitors the NSTA performance with respect to the reporting of MI, progress against objectives, risk management and financial performance.

3.3 Accountability

4. As per Cabinet Office requirements, priorities for the NSTA should be set out in an annual chair’s letter issued by the responsible minister (or PAO, if delegated) and which should confirm the SMART outputs or objectives for the organisation to deliver.

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