Ofgem has announced updates to the retail price index (RPI) and weighted average of the single supply point charge for relevant gas transporters’ (GT) for 2024. These figures should be used to adjust transportation charges, effective from 1 January 2025, in accordance with Special Condition 1 of the Independent GT licences.

Ofgem has announced plans to consult in early 2025 on introducing zero standing charge tariffs as an option under the energy price cap, alongside existing tariffs. This aims to offer consumers more choice in managing their energy costs. Ofgem has also announced a new debt strategy to address rising energy debt, including proposed supplier standards to improve support for struggling customers. Key measures include a clear Debt Guarantee, rules to create more consistent pay assessments, and requirements for suppliers to accept debt repayment offers from reputable third parties. These proposals form part of Ofgem's broader efforts to reform the energy market and enhance consumer protections amidst ongoing affordability challenges.

Ofgem has announced the launch of its 14th Offshore Transmission Owner (OFTO) tender round, with an estimated value of £3.5 billion. Investors will compete to own and operate the transmission assets connecting the Hornsea 3 offshore wind farm to Great Britain’s electricity grid. The competitive process aims to keep consumer costs down and maintain high-performance standards. Ofgem will assess bids and grant offshore transmission licences, while the developer will sell the assets to the successful bidders. Successful bidders will receive an inflation-linked revenue stream for up to 25 years to finance, operate and maintain the assets, including cables and substations, subject to asset availability and performance. Hornsea 3 is due for completion by the end of 2027 and is projected to generate enough electricity to power 3.3 million UK homes.

The Office of Gas and Electricity Markets (Ofgem) has been appointed as the administrator of the Department for Energy Security and Net Zero’s (DESNZ) Bill Discount Scheme. This initiative is designed to provide households located near new electricity transmission infrastructure with annual energy bill discounts of up to £250. DESNZ intends to issue implementing regulations in the summer of 2026, with the first payments scheduled for early 2027. Ofgem’s role will be to ensure that the Bill Discount Scheme payments reach eligible households within the required timeframes and is expected to publish a six-week administration consultation by July 2026, which will cover household eligibility criteria, delivery mechanisms and compliance arrangements to guarantee the scheme’s effective, fair and transparent implementation.

Ofgem has announced its decision to appoint Elexon as the delivery body for the new Flexibility Market Asset Registration (FMAR) system, which is set to launch in 2027. Elexon will oversee the deployment and operation of the new digital infrastructure required to support FMAR processes. The FMAR system will enable aggregators to register once with their network operator, Distribution System Operator, or the National Electricity System Operator to participate in flexibility markets at both local and national levels. This decision follows Ofgem’s July 2024 consultation. Elexon will now collaborate with stakeholders through working groups to design the requirements and capabilities of the FMAR’s IT system.

Ofgem has approved Balancing and Settlement Code (BSC) modification P483, which removes the requirement for customers to be half-hourly settled in order for their flexibility to be traded. The change, proposed by Axle Energy and recommended by the BSC panel on 10 July 2025, aims to address barriers that prevent Virtual Lead Parties (VLPs) and Virtual Trading Parties (VTPs) from trading flexibility for domestic and small business customers who are not half-hourly settled. This decision supports a more efficient and economic electricity system and promotes competition. The modification will take effect ten working days after Elexon notifies the industry.

Ofgem has approved the Connection and Use of System Code (CUSC) modification CMP446, raising the lower threshold at which a Transmission Impact Assessment (TIA) evaluation is required in England and Wales from 1MW to 5MW. The new threshold will now be measured by Export Capacity rather than Registered Capacity. As a result, new connection applications and unconnected projects currently in the queue below 5MW will no longer require a TIA evaluation, while projects that are already connected will remain subject to their existing agreements. The 200kW TIA threshold in Scotland remains unchanged.

Ofgem has approved the Distribution Connection and Use of System Agreement (DCUSA) modification DCP440. The change allows Distribution Use of System (DUoS) charges to be applied to Market-wide Half Hourly Settlement (MHHS) migrated sites where consumption is detected, regardless of energisation status. Raised by Eastern Power Networks, the modification will take effect on 1 April 2027 and addresses a gap in DUoS charging where de-energised sites consuming electricity were not previously billed.

Ofgem has approved GreenLink Interconnector Limited (GIL)’s Access Rules and the Charging Methodology on the basis that they meet the relevant requirements and objectives of Standard Licence Condition 11A (4) and 10 (4) of GIL’s Electricity Interconnector Licence.

Ofgem has approved Change Request CR061 for the Market-wide Half-Hourly Settlement (MHHS) programme. The decision moves the M10 milestone date—when central parties must be ready to accept Meter Point Administration Numbers (MPANs)—from 24 September 2025 to 22 September 2025, aligning it with the Central System go-live date. The request was submitted by the MHHS Implementation Manager.

Ofgem has approved Change Request CR055 for the Market-wide Half Hourly Settlement (MHHS) Programme, resulting in a 6.5-month delay to its implementation. To mitigate the risk of further delays, Ofgem has announced its intention to introduce a package of regulatory measures in early 2025. These proposed measures include issuing directions to Elexon and MHHS Participants, modifying the licences of supply and licensed distribution system operators, and revising the MHHS Governance Framework.

Ofgem has approved the proposed amendments to the terms and conditions related to electricity balancing for dynamic response services, submitted by the National Energy System Operator (NESO) on 25 April 2025. The changes modify the Applicable Balancing Services Volume Data (ABSVD) section of the service terms to enable the ABSVD calculation methodology to be applied to non-Balancing Mechanism units.