Ofgem has launched a consultation on proposed licence changes to exempt electricity suppliers with fewer than 50,000 domestic customers from the universal service obligation (USO), which requires them to offer supply to any domestic customer. The exemption would allow smaller suppliers to focus on specialist products and services until they reach the threshold, aiming to reduce barriers to entry and support innovation in the electricity retail market. Following feedback on an earlier consultation, Ofgem has revised the proposed wording so that the threshold applies to the total number of customers supplied by licensees within the same corporate group, to prevent businesses from using multiple licensed companies to avoid the obligation. Other applicable requirements, including consumer protection, financial resilience and price cap rules, would continue to apply. Ofgem plans to evaluate the exemption two years after implementation. The consultation closes on 5 November 2026.

Ofgem has opened a consultation on the introduction of a temporary facilitative licence condition to support the creation and implementation of a new independent system operator and planner (ISOP). Ofgem intends to add the temporary facilitative conditions to all standard licence conditions, including the smart meter communication licence. The proposed modifications require licensees to cooperate in, and not to frustrate, the transition to the ISOP if required. The licensees have to take all reasonable steps to allow the ISOP implementation objectives to be realised and give full effect to any ISOP change programme. The modifications are being proposed as part of the joint Nation Energy System Operator implementation programme with Department for Energy Security and Net Zero. This consultation will close on 10 May 2024.

Ofgem has launched a consultation on proposed licence modifications designed to implement the Regional Energy Strategic Plan (RESP). The focus is on four specific licence areas: the electricity system operator licence, the gas system planner licence, the standard conditions of the electricity distribution licence, and part D of the standard special conditions of the gas transporters licence. The consultation will close on 28 November 2025.

Ofgem has launched a consultation package on the proposed regulatory changes intended to establish a new market facilitator role, to be held by Elexon. The aim of the market facilitator is to standardise local flexibility markets and align with national flexibility markets. The consultation package comprises draft governance documents that detail Elexon’s responsibilities in the role, an impact assessment, and proposed licence modifications affecting both the National Electricity System Operator and Distribution Network Operators. The consultation closes on 16 October 2025.

Ofgem has launched a statutory consultation on its proposed methodology for incorporating the costs associated with the Nuclear Regulated Asset Base (nRAB) into the default tariff cap. The nRAB model, legislated for under the Nuclear Energy (Financing) Act 2022, enables regulated returns to investors during the construction phase of new nuclear projects, such as Sizewell C. This consultation focuses on how the price cap should reflect these costs, which are to be recovered from electricity suppliers across eligible demand.

Ofgem has launched a consultation on its minded-to decision to approve the original proposal presented in the Grid Code 0117 Final Modification Report. The proposal seeks to improve transparency and consistency of access arrangements for power station connections across Great Britain by establishing a common set of requirements. Raised by Scottish and Southern Energy Generation Ltd in June 2018, the proposal suggests reducing the current three power station thresholds (small, medium, and large) to two, defining large power stations as those with a registered capacity of 10MW and above, and small power stations as those below 10MW. The consultation invites stakeholder feedback on the proposal’s implementation, benefits, and potential impacts before a final decision is made. The consultation closes on 11 April 2025, with a decision expected on 9 May 2025.

Ofgem has launched a consultation on its minded-to decision to reject Distribution Connection and Use of System Agreement (DCUSA) Change Proposal 412 (DCP 412) and two alternative proposals, in line with the DCUSA Panel's recommendation. DCP 412 would allow qualifying high-capacity, low-utilisation non-domestic electricity customers to move down one residual charging band, reducing fixed distribution and transmission network charges while redistributing costs to other users. Eligibility would require capacity utilisation of at least 90% during at least 1 half-hour period and a load factor of no more than 10%, both assessed over the same 12-month period. Ofgem considers that the proposals would not better facilitate the DCUSA charging objectives, citing insufficient evidence that the criteria identify customers facing affordability pressures or that re-banding would improve supplier competition. It also raises concerns about cost redistribution and the administrative burden of retrospective adjustments. Although its impact assessment suggests the wider cost impact would be small, Ofgem states that the benefits cannot be quantified without further evidence. It identifies its Cost Allocation and Recovery Review as a means of examining wider charging issues. The consultation closes on 11 December 2026.

Ofgem has launched a statutory consultation under section 23(2) of the Gas Act 1986 (GA 1986) on proposed modifications to gas transporter licences held by Independent Gas Transporters (IGTs). The consultation targets IGTs with Special Condition 1, gas shippers and suppliers, consumer bodies and charities and Gas Distribution Networks (GDNs). The proposals would amend Special Condition 1 to update the relative price control charging framework. Key changes include: (1) a transitional arrangement for 2027 where charges are set at the midpoint between the relative charge and the ceiling if the relative charge exceeds the ceiling and (2) a switch from RPI to CPIH indexation for ceiling and floor calculations from 2027 onwards. Reset-points will align with GDN price control reviews, with the first reset-point set for 1 January 2028. A new Special Condition 2 would establish IGT Regulatory Instructions and Guidance (IGT RIGs) as the primary mechanism for directing licensees to collect and provide compliance information. The IGT RIGs will be issued by direction separately from this consultation, with a minimum 28-day representation period before any new or amended RIGs take effect. Licensees must maintain records for eight years and submit annual compliance confirmations to Ofgem. The consultation closes on 11 September 2026.

Ofgem has launched a consultation on proposed modifications to Offshore Transmission Owner (OFTO) Licences under section 11A(2) of the Electricity Act 1989 (EA 1989). Ofgem is seeking views on several proposals, including: (1) the insertion of a new Transmission System Availability Incentive exclusion into Amended Standard Condition E12-J4, to protect OFTOs from penalties when outages are required under System Operator agreements; (2) modifications to the licences of TC East Anglia One OFTO Limited and Diamond Transmission Partners Hornsea Two Limited to align with modification decisions made in June and July 2023 regarding end-of-tender revenue streams and incremental capacity arrangements; and (3) a correction to the licence of TC Robin Rigg OFTO Limited to rectify a drafting error within Amended Standard Condition E12-J4. The consultation closes on 9 October 2025.

Ofgem has opened a statutory consultation on proposed modifications to RIIO 3 licences and associated documents for electricity transmission, gas transmission, gas distribution and the electricity system operator. The amendments support implementation of the RIIO 3 price control settlement. Responses are due by 16 January 2026.

Ofgem has launched a consultation on proposed modifications to five additional associated documents supporting the RIIO-3 gas distribution and gas transmission licences. The consultation forms part of the wider RIIO-3 price control framework and supplements the associated documents previously consulted on alongside the RIIO-3 licence modifications. The consultation closes on 26 February 2026.

Ofgem has launched a consultation on a proposed modification to the Biomethane Connections Use It or Lose It (UIOLI) governance document under Special Condition 3.21 of the Gas Transporter Licence. The modifications would allow gas distribution network (GDN) licensees operating multiple networks to reallocate UIOLI allowances between those networks within the same group, replacing the current prohibition on such reallocation. This change is intended to address mismatches between fixed geographic funding allocations and actual demand for biomethane connections across networks. The modifications are expected to make better use of available funding, enable more viable biomethane connections to proceed and ensure allowances follow demand rather than fixed geographic boundaries. Overall funding levels set at RIIO-3 Final Determinations remain unchanged. The consultation closes on 20 July 2026.