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NEWS
Ofgem has launched a statutory consultation on proposed amendments to RIIO-3 licences and price control financial instruments (PCFIs) covering electricity transmission (RIIO-ET3), gas transmission (RIIO-GT3) and gas distribution (RIIO-GD3). The proposed modifications, under section 11A(2) of the Electricity Act 1989 (EA 1989) and section 23(2) of the Gas Act 1986 (GA 1986), address typographical errors, drafting inconsistencies and minor inaccuracies identified by Ofgem and network companies. The changes affect nine licensees across the three sectors and include corrections to broken cross-references, regulatory terms, variable names and formulae. Proposed amendments to the price control financial models (PCFMs) address inputs, totex allocation percentages, cap-rate classifications, inflation assumptions and other model mechanics. Ofgem states that the amendments are intended to improve clarity, consistency and operability and do not alter the underlying policy decisions in the RIIO-3 Final Determinations. Ofgem intends to publish its decision by the end of October 2026. If implemented, the modifications will take effect not less than 56 days after the decision is published. The consultation closes on 18 September 2026.
NEWS
Ofgem has launched a consultation on proposed requirements for the Data Domain Coordinator role established under Ofgem and the Department for Energy Security and Net Zero's joint Energy Digitalisation Framework. The National Energy System Operator, the Retail Energy Code Company (RECCo) and Elexon are appointed as coordinators across four data domains: (1) core energy system; (2) consumer data; (3) behind-the-meter assets and (4) metering. Proposed baseline requirements cover three areas: (1) technical activities to improve data standardisation, quality and accessibility; (2) engagement with data holders, users and smaller organisations and (3) governance and operational processes to support reporting and coordination. Domain coordinators are also expected to produce three early-stage outputs defining their data domain, mapping stakeholder engagement and scoping the coordinator role. Governance oversight will be provided through the Digitalisation Board and Digitalisation Delivery Group, with coordinators required to submit quarterly reports. The consultation also seeks views on regulatory mechanisms to hold RECCo and Elexon accountable for the role, with a follow-up consultation on enforcement options anticipated for autumn 2026. The consultation closes on 8 September 2026.
NEWS
Ofgem has launched a consultation on the proposed timelines and incentives framework for the LionLink and Nautilus Non-Standard Interconnector projects under the Offshore Hybrid Asset Pilot Scheme. LionLink would provide 1.8GW of capacity between Great Britain and the Netherlands, while Nautilus would provide 1.4GW between Great Britain and Belgium. The framework is intended to support timely delivery while allowing for delays outside developers’ control. It is based on the arrangements used for projects in the Third Cap and Floor Application Window and covers the regime start date, backstop date, delay payback mechanism, reasonable delay events and pre-operational force majeure. Ofgem states that the proposals would provide greater certainty on delivery timescales, strengthen developer accountability and set out how qualifying delays will be addressed. The consultation closes on 15 October 2026.
NEWS
Ofgem has launched a consultation on a set of proposed directions to be issued to Elexon in its role as the Market-wide Half-Hourly Settlement (MHHS) implementation manager. The directions focus on two key areas: reporting on the progress of MHHS implementation and the management of MHHS testing cohorts. The consultation closes on 30 January 2025.
NEWS
Ofgem has launched a non-statutory consultation on the draft transmission licence for Competitively Appointed Transmission Owners (CATOs) and accompanying guidance. The CATO regime introduces a competitive tender process through which a CATO will be appointed to design, finance, build and operate onshore electricity transmission assets. The draft licence proposes a new CATO-specific Section F comprising 50 conditions and 1 special condition on milestone payments. Drawing on existing electricity transmission and offshore transmission owner licence provisions where appropriate, it also introduces CATO-specific arrangements covering: (1) the post preliminary works cost assessment; (2) security during construction; (3) revenue; (4) asset health; (5) refinancing; (6) business handover and (7) a CATO of Last Resort mechanism. The guidance explains how key licence conditions and CATO processes are intended to operate. Ofgem intends to publish a further update in early 2027 before launching a statutory consultation, with the first CATO tender expected to launch during 2027. The consultation closes on 16 October 2026.
NEWS
Ofgem has launched a consultation on draft guidance for the Data Communications Company's (DCC) remuneration policy for senior managers, setting out proposals to strengthen the link between remuneration, performance and value for money for consumers under the DCC2 regulatory framework. The draft guidance proposes that remuneration should be based on four performance areas: (1) customer satisfaction; (2) system performance; (3) business plan quality; and (4) business plan delivery. It also sets out proposals on how organisational and individual performance should be reflected in pay decisions, together with reporting, governance and implementation arrangements. Subject to the consultation outcome, Ofgem intends to issue the final guidance in August 2026. The consultation closes on 5 August 2026.
NEWS
Ofgem has launched a consultation, seeking views on its draft determinations for the National Energy System Operator (NESO)'s latest Business Plan submission, 'NESO1'. The draft determinations set out Ofgem's provisional views on NESO's strategic aims, performance objectives, value for money, reporting requirements and approach to innovation funding. They also explain the proposed framework for assessing NESO's performance in its role as Great Britain's independent energy system operator and planner. The consultation closes on 10 March 2026.
NEWS
Ofgem has launched a consultation on its draft determination regarding National Grid Electricity Transmission plc’s (NGET) application under the RIIO-2 Non-Operational IT Capex Re-opener for its Electricity Transmission Control Centre (ETCC) project. The ETCC is intended to support operational separation from the National Energy System Operator (NESO) and meet compliance requirements under the System Operator – Transmission Owner Code (STC). Ofgem proposes to approve £48.67m of RIIO-ET2 allowances for ETCC up to the end of the current price control period, with remaining allowances to be assessed under RIIO-ET3. This approach aims to reflect progress made while allowing future assessment of ETCC alongside NGET’s wider property portfolio strategy. The consultation closes on 22 January 2026.
NEWS
Ofgem has launched a consultation on its Draft Determinations and draft direction concerning five Medium Sized Investment Project (MSIP) applications submitted by National Grid Electricity Transmission (NGET) under the RIIO-2 price control framework. The MSIP re-opener mechanism enables Electricity Transmission Owners to request additional funding for projects below £100m where baseline allowances are insufficient. Ofgem proposes to allow £20.309m of the £22.365m requested for the RIIO-ET2 period and £13.117m for RIIO-ET3. The projects include extensions and upgrades at Anglo Scottish, Walpole, Cilfynydd, Swansea North and Upper Boat substations, primarily to support system operability and grid stability services requested by the National Energy System Operator as part of its Stability Pathfinder Phase 3. One project involves extending the Anglo Scottish Operational Tripping System to mitigate boundary constraints. The consultation closes on 19 January 2026.
NEWS
Ofgem has launched a consultation on its draft determinations for 30 applications submitted by electricity transmission owners during the May 2026 RIIO-ET3 Load Re-opener window. The applications seek additional funding for new load projects that were not funded, or were only partly funded, through the RIIO-3 final determinations. Ofgem’s proposals set out the additional allowances it intends to grant and explain any adjustments to the amounts requested. The Load Re-opener is intended to support the timely delivery of necessary electricity network infrastructure while protecting consumers from unnecessary costs.
NEWS
Ofgem has launched a consultation on its Draft Gas Distribution (RIIO-3) Crossover Submission Guidance, which sets out the principles, methodologies and processes it will apply when assessing the need for, and value of, amendments to allowances under the RIIO-GD2 and RIIO-GD3 price controls pursuant to Special Condition 3.32 of Gas Distribution Network (GDN) licences. The draft guidance defines the scope of GD2/GD3 crossover items, outlines the criteria and approach for determining adjustments, and details the application requirements GDNs must meet to support the Authority’s assessment. The consultation closes on 12 March 2026.
NEWS
Ofgem has launched a consultation on the draft second preliminary Strategic Direction Statement (SDS‑2) for energy industry codes, setting out its strategic assessment of government policy and energy‑sector developments that may require code modifications over the next one to five years. The consultation seeks views on the proposed policy areas, their categorisation across the ‘Act now’, ‘Think and plan’ and ‘Listen and wait’ time horizons, and whether any key areas have been omitted. It also invites feedback on Ofgem’s proposed approach to converting SDS‑2 from a preliminary to a hybrid Strategic Direction Statement following the expected designation of the Balancing and Settlement Code (BSC) and the Retail Energy Code (REC) by the end of 2026, under which SDS‑2 would become formal for designated codes without further consultation. SDS‑2 builds on the first preliminary SDS published in August 2025 as part of wider energy code reform under the Energy Act 2023 and identifies priority areas including strategic network planning, faster connections, deployment of low‑carbon technologies, reformed national pricing, consumer‑led flexibility and digitalisation. The consultation closes on 28 May 2026