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Latest Energy News

Ofgem seeks views on TCLC and consults on amending TCLC guidance, LNB News 08/12/2023 15

Ofgem has published a summary of responses to its December 2023 call for input on proposed changes to the Transmission Constraint Licence Condition (TCLC), a provision designed to prevent licensees from obtaining excessive benefits from bids submitted in the Balancing Mechanism (BM) during transmission constraint periods. The call for input examined five potential options, including: (1) expanding the TCLC to cover balancing services used by the electricity system operator to manage constraints other than the BM; (2) extending its scope to include offers; (3) expanding its application to import bids and export offers; (4) replacing its requirements with a cap on generators’ prices or profits during constraint periods; (5) extending its requirements to providers of balancing services beyond licensed electricity generators. The majority of stakeholders did not support these proposals. As a result, Ofgem confirmed that it will not proceed with formal consultations on the suggested changes.

Ofgem publishes decision on energy code manager selection policy

Ofgem has published its decision on the energy code manager selection policy under the Energy Act 202, following its November 2024 consultation. Code managers will be selected through a three-stage process comprising an initial eligibility assessment, a licensing assessment, and an implementation and assurance process. In determining the selection route, Ofgem considered factors such as speed of delivery and value for money. As a result, a non-competitive selection process will be used for both the Balancing and Settlement Code and the Retail Energy Code. Selection routes for the three consolidated codes will be based on feedback from a public expression of interest process, while the decision on the Smart Energy Code manager has been deferred pending further updates. Additionally, Ofgem has granted enduring code manager licences and published updated guidance on the code manager selection process. It also confirmed plans to introduce regulations for the competitive selection of code managers under EnA 2023, s 189, with the Department for Energy Security and Net Zero expected to lay these regulations in Parliament later in 2025.

DESNZ launches call for evidence as part of independent review on greenhouse gas removals

The Department for Energy Security and Net Zero (DESNZ) has launched a call for evidence as part of an independent review, chaired by Dr Alan Whitehead, to examine how greenhouse gas removal (GGR) technologies can support the UK’s 2050 net zero targets. Stakeholders are invited to submit evidence on: (1) the potential scale of emissions savings; (2) opportunities and barriers to deploying GGRs at scale; (3) the economic costs associated with GGR deployment; (4) strategies for transitioning from public to private investment; (5) the role of GGRs in advancing government missions; (6) options for balancing the UK’s residual emission; and (7) how GGRs could contribute to the UK’s security of supply. The call for evidence closes on 20 June 2025, with the review’s findings expected to be published in autumn 2025.

Ofgem approves two STCP modifications to support connections reform

Ofgem has approved two System Operator - Transmission Owner Code Procedure (STCP) modifications. The first modification, PM0142, introduces STCP 18-8, a one-off, time-limited procedure to facilitate the introduction of the Connection and Use of System Code (CUSC) Modification Proposal CMP435 by establishing contractual relationships between the National Energy System Operator and Transmission Operators. The second modification, PM0143, aligns the STCPs with the broader connections reform work. Both modifications facilitate the implementation of the TMO4+ proposals, which were approved by Ofgem on 15 April 2025.