Ofgem has announced various changes to the Strategic Innovation Fund (SIF). The application windows for the Discovery, Alpha, and Beta phases will now open every four months for approximately four weeks. In addition, applicants will have the option to pause after completing one phase before applying for the next. These changes will come into effect in September 2024, with the first application cycle opening on 23 September 2024 and closing on 23 October 2024. Thereafter, application cycles will open at the end of January, the end of May, and again at the end of September each year.

Ofgem has launched a statutory consultation on proposed amendments to special condition 9.3 price control deliverable reporting requirements and the price control deliverable reporting requirements and methodology document. The amendments will allow for the inclusion of a price control deliverable assessment (PCD). The PCD will make provision for allowance adjustments in respect of accelerated strategic transmission investment (ASTI) projects where the efficient outturn costs deviate by an amount greater than +/-5% of final project allowances. The deadline for the response is 18 September 2024.

Ofgem has announced a consultation on the proposed modification of the Gas Transporter Licence currently held by National Grid Gas Plc in respect of metering obligations, a number of which are due to sunset on 31 December 2024. The consultation closes on 2 September 2024.

Ofgem has announced its decision to extend the Ban on Acquisition-only Tariffs (BAT) to 31 March 2026, along with its associated Market-wide Derogation. This decision follows consultations held in May and October 2024. Ofgem indicated that feedback received on potential reforms to the BAT will inform its ongoing work on the future of price protection in the energy market, in which an enduring BAT is being explored as a potential option.

Ofgem has announced a 7% decrease in the energy price cap for Q3 2025, covering the period from 1 July to 30 September 2025, setting the new cap at £1,720 annually for an average household paying by Direct Debit for dual fuel. Despite this decrease, the cap remains 10% (£152) higher than the cap set for the same period in 2024 (£1,568).

Ofgem has announced a 1.2% increase in the energy price cap for the first quarter of 2025, covering 1 January to 31 March 2025, setting the new cap at £1,738 annually for an average household paying by Direct Debit for dual fuel. This represents a £21 increase per year but remains 10% (£190) cheaper than the cap for January-March 2024 (£1,928) and 57.2% (£2,321) below the peak during the 2023 energy crisis. Ofgem also highlighted increased market competition, with 1.5 million households switching tariffs over the past three months and eight suppliers offering rates at least 10% below the cap.

Ofgem has announced its decision on the market facilitator policy framework. The decision sets out the policy framework by summarising consultation responses and outlining its decision and rationale regarding proposals for establishing the role, defining its functions, specifying its deliverables, and determining performance arrangements. Elexon, appointed in July 2024, will coordinate flexibility market arrangements. Following this decision, Ofgem intends to consult on new licensing conditions for both the Distribution Licence and NESO’s ESO Licence, as well as to produce and consult on a governance framework document and an impact assessment.

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.

Ofgem has announced it is redeveloping the Renewables and CHP Register, which is currently being used to administer the Renewables Obligation, Feed-in Tariff (specifically ROOFIT) and Renewable Energy Guarantees of Origin schemes, and aims to provide a new register that is fit for purpose and easier to use. The new system will be called the Renewable Electricity Register (RER), which is planned to launch in Q3 2022–2023. Ofgem notes that this project is currently in the beta phase of development where functionality is largely completed across areas such as organisation management, user management and certificate handling, among others, and confirms that testing will continue throughout Q1 and Q2 2022–2023. Progress has also been made in maturing the cloud hosting infrastructure and the infrastructure where the RER will be hosted is also complete. This project will continue to its final testing phase in due course prior to its launch.

Ofgem has announced the introduction of a new approach to the Strategic Innovation Fund (SIF), seeking to provide innovators with more opportunities to apply or re-apply to the SIF and gain faster access to funding. The changes, which follow extensive engagement with various stakeholders, aim to make the SIF more flexible and create more opportunities to apply for funding.

Ofgem has published new compensation rules for delays when switching suppliers. When changing electricity or gas suppliers, it is the new supplier that handles the switching process for the customer. Ofgem’s rules require energy suppliers to switch customers within 5 working days, or customers will automatically receive £30 in compensation. Further compensation is available for additional delays. The new rules came into effect on 1 April 2024.

Ofgem has redistributed the Renewables Obligation (RO) Quarter 3 Mutualisation payments in respect of the 2021-22 compliance period. The amount redistributed includes payments received into the England, Wales and Scotland Mutualisation accounts, coming to a total of £29,614,486. The distribution calculation is based on the number of Renewable Obligation Certificate (ROC)'s presented by active suppliers.