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NEWS
Ofgem has launched a consultation on proposed licence and price-control changes to enable National Gas Transmission plc (National Gas) to recover costs associated with maintaining and, where appropriate, reinstating continental European gas interconnector import capability. Ofgem has separately approved an agreement between National Gas and Interconnector Limited (INT) to prevent a further reduction in import capability through the GB–Belgium gas interconnector. The proposed modifications would create a pass-through mechanism allowing National Gas to recover payments and eligible costs for qualifying interconnector arrangements. Ofgem says declining UK Continental Shelf production and reduced interconnector import capability have weakened gas-system resilience under rare stress scenarios. The five-year INT agreement would maintain about 61 mcm/d of import capability but would not procure gas or guarantee flows. The estimated bill impact is £1.19 per domestic gas meter per year. The consultation closes on 20 November 2026.
NEWS
Ofgem has launched a consultation on proposed licence modifications to support implementation of the Regional Energy Strategic Plan (RESP), following its April 2025 decision on the RESP policy framework. Ofgem proposes modifications to the Electricity System Operator Licence, Gas System Planner Licence, Standard Conditions of the Electricity Distribution Licence, and Part D of the Standard Special Conditions of the Gas Transporters Licence. Ofgem is also seeking views on a draft RESP guidance document, which sets out its expectations for the National Energy System Operator’s delivery of the RESP, and distribution network companies’ participation in the RESP’s development. The consultation closes on 8 August 2025.
NEWS
Ofgem has launched three related consultations on proposed modifications to the Regulatory Instructions and Guidance (RIGs) and Regulatory Reporting Packs (RRPs) across gas transmission (RIIO-GT2), gas distribution (RIIO-GD2), and electricity distribution (RIIO-ED2) for the 2025/26 Regulatory Year. Across all three consultations, the proposed modifications would take effect in April 2026 and apply to information required to be submitted by 31 July 2026 for the 2025/26 reporting period. Each consultation closes on 30 March 2026.
NEWS
Ofgem has opened a statutory consultation on proposed licence modifications to electricity transmission and electricity distribution licences to give effect to its RIIO-2 Re-opener Applications 2025 Final Determinations, published on 12 December 2025. The consultation proposes amendments to special licence conditions to award additional re-opener allowances and to introduce Price Control Deliverables (PCDs) linked to that funding. These include PCDs for electricity transmission Medium Sized Investment Projects (MSIPs) and for electricity distribution re-openers covering Load Related Expenditure and the Hebrides and Orkney, as well as funding for Scottish Hydro Electric Transmission’s (SHET) Gremista Grid Supply Point (Gremista GSP) project. The consultation closes on 2 March 2026.
NEWS
Ofgem has launched three consultations on proposed annual reporting frameworks for the RIIO-3 price control period (2026–31), covering gas distribution (RIIO-GD3), gas transmission (RIIO-GT3) and onshore electricity transmission (RIIO-ET3). The proposals aim to: (1) improve the clarity, consistency and comparability of reporting; (2) align reporting requirements with the RIIO-GD3, RIIO-GD3 and RIIO-ET3 decisions and (3) support effective regulatory monitoring. Each consultation proposes updates to the Regulatory Instructions and Guidance, Regulatory Reporting Pack data templates and Network Asset Risk Metric reporting packs, informed by business plan template assessments, data reviews and stakeholder engagement. The consultations close on 25 August 2026.
NEWS
Ofgem has launched a consultation on its proposed Innovative Delivery Incentive Guidance Document for RIIO-ET3, seeking stakeholder views on the framework that will govern the assessment and reward of innovative delivery performance by electricity transmission licensees. The proposed guidance covers the eligibility criteria for licensee submissions, the appointment and role of the Innovative Delivery Incentive Performance Panel, the assessment criteria and decision-making process, and the methodology for calculating incentive rewards. Ofgem is seeking feedback on, among other things, the proposed eligibility criteria, panel composition, assessment approach, scoring methodology and reward calculation framework. The consultation is directed at National Grid Electricity Transmission Plc, Scottish Hydro Electric Transmission Plc and SP Transmission Plc, and is open to all interested stakeholders. The consultation closes on 21 August 2026.
NEWS
Ofgem has launched a consultation on the proposed legal vires and governance framework for the Smart Data Repository (SDR). The SDR would retain half-hourly electricity consumption data received by Elexon through Market-wide Half-Hourly Settlement (MHHS) and enable controlled third-party access to that data. Access to individual consumer data would require express and informed consent through the National Energy System Operator, the Retail Energy Code Company’s consumer consent solution. The SDR would also form part of the digital infrastructure supporting the energy digitalisation framework. Ofgem proposes amendments to Electricity System Operator Licence Condition E1 to enable the Balancing and Settlement Code (BSC) to provide for Elexon to establish and operate the SDR. It also proposes amendments to standard licence condition 47 of the electricity supply licence to clarify the basis on which suppliers may provide half-hourly consumption data for storage in the SDR and subsequent controlled access. Elexon has developed the SDR proposal through BSC modification P494, but Ofgem considers that P494 alone does not provide the complete legal and regulatory framework required for the repository. Responses must be submitted by 19 October 2026.
NEWS
Ofgem has launched a statutory consultation on proposed modifications to the special licence conditions of the three Transmission Owners’ (TOs) electricity transmission licences, aimed at implementing its early competition policy for onshore electricity transmission. This follows Ofgem’s July 2024 policy decision on early competition. The consultation focuses on TO conflict mitigation and information sharing arrangements related to TOs role in supporting and participating in an Onshore Transmission Tender Exercise. The consultation closes on 13 January 2025, with Ofgem expected to publish a decision on the licence modifications in early 2025.
NEWS
Ofgem is consulting on activating the Market Stabilisation Charge (MSC), reintroduced in dormant form in 2026, to mitigate risks from sharp wholesale price falls. It proposes a 10% trigger and 85% coverage of stranded hedge value beyond that point. A decision is expected in mid-November 2026, with activation shortly afterwards if Ofgem proceeds. The MSC would be expected to remain active until at least the end of March 2027, with any subsequent deactivation subject to consultation. Responses are due by 29 October 2026.
NEWS
Ofgem has launched a consultation on its minded-to position to allocate an additional £5.115m to National Gas Transmission (NGT)’s Network Innovation Allowance via the Hydrogen Innovation funding mechanism (HYINt) found in Special Condition 5.2 of NGT’s Gas Transporter Licence. This funding aims to support the development of NGT’s hydrogen innovation projects through the HYINt. The consultation follows NGT's December 2024 request for £7.4m to facilitate the delivery of the hydrogen safety case for the transmission system by 2026. The consultation closes on 4 April 2025.
NEWS
Ofgem has launched a consultation on proposals to grant £113.47 million in additional allowances to electricity distribution network companies under the RIIO-ED2 price control, following its assessment of nine re-opener applications submitted in January 2026 for a total of £150.53 million. The applications cover digitalisation, environmental measures, high value projects, physical security, and wayleaves and diversions. Ofgem proposes to provide £47.98 million for digitalisation projects, no additional allowance for Scottish and Southern Electricity Networks Distribution's £16.39 million environmental application, the full £17.52 million requested by SP Electricity North West for two high value projects, £11.99 million of Northern Powergrid's £18.13 million request for wayleaves and diversions, and the full £19.46 million requested by SP Energy Networks for wayleaves and diversions. Details of the physical security applications and proposed allowances have been withheld due to the sensitivity of information concerning critical national infrastructure. The consultation closes on 23 September 2026.
NEWS
Ofgem has launched a consultation seeking views on proposed amendments to the Data Communications Company (DCC) Regulatory Instructions and Guidance (RIGs) ahead of the second Price Control Period. The proposed changes, informed by Ofgem’s assessment of DCC’s first ex-ante Price Control submission, are intended to improve the transparency, consistency and usability of the reporting framework while maintaining the underlying ex-ante cost control framework. They include introducing dedicated reporting tabs for change costs, a new Annex 1 for reporting communications hub volume-driven costs and associated unit rates, updates to the definitions of External Services Resource (ESR) and External Services Non-resource (ESNR) costs and reporting requirements, corrections to reporting formulae, the removal of obsolete General Ledger codes and updates to reporting templates and Supplementary Schedules for the second Price Control Period. The consultation closes on 31 August 2026.