Ofgem announces modifications to gas and electricity licence conditions and PCFIs
Ofgem has announced significant modifications to Price Control Financial Instruments (PCFIs) and licence conditions for gas and electricity transmission and distribution networks. The changes, effective from 26 August 2025, follow a consultation that closed on 24 May 2025 and received 13 responses from distribution network operators. Key changes include: modifications to tax reconciliation statement submission dates, the introduction of new Special Licence conditions for the Transitional Centralised Strategic Network Plan 2 (tCSNP2), accompanied by amendments to vulnerability allowances and provisions to recover National Energy System Operator (NESO) transition costs. The changes are designed to improve regulatory frameworks, enhance collaboration between networks, and support the transition to future system operations.