Ofgem consults on preliminary SDS and governance arrangements for industry codes

Article summary

Ofgem has launched a consultation on its preliminary Strategic Direction Statement (SDS) and accompanying governance arrangements for industry codes. The preliminary SDS serves as a precursor to the statutory SDS that will be published following industry code designation. It covers all industry codes within the scope of code governance reform and sets out a five-year outlook, with a focus on the next 1-2 years. Ofgem proposes roles and responsibilities for SDS implementation and details proposals to progress SDS-related code changes under existing governance. Alongside this, Ofgem is seeking views on introducing a consistent modification prioritisation process across industry codes and a new licence obligation to co-operate with the code modification process where it supports SDS alignment. The consultation closes on 28 March 2025.