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NEWS
Ofgem has launched a statutory consultation on proposed amendments to the Special Conditions of the Electricity Distribution Licence to introduce a new pass-through mechanism designed to support Distribution Network Operators (DNOs) in implementing the TMO4+ connections reform. The mechanism would allow DNOs to recover reasonable costs associated with the one-off Gate 2 to Whole Queue (G2tWQ) exercise. It would apply only to the implementation costs of the G2tWQ exercise and not to the costs of processing new applications under CMP435. Ofgem is also consulting on the creation of a connections reform costs governance document to clarify which costs are recoverable and set out associated DNO obligations. The consultation closes on 18 September 2025.
NEWS
Ofgem has launched a consultation on proposed modifications to the re-opener guidance and application requirements document to improve clarity regarding the redaction of published information and the data submitted by licensees in their re-opener applications. The consultation closes on 18 April 2025.
NEWS
Ofgem has launched a non-statutory consultation on proposed licence conditions to support Elexon's new role as the market facilitator, which has a mandate to standardise local flexibility markets and align with national flexibility markets. The consultation seeks views on proposed amendments to the Standard Conditions of the Electricity Distribution Licence and the Electricity System Operator (ESO) Licence. The proposed conditions would require Distribution Network Operators (DNOs) and the National Energy System Operator (NESO) to comply with Flexibility Market Rules, which will be owned and developed by the market facilitator. The consultation closes on 7 August 2025.
NEWS
Ofgem has opened a consultation seeking views on its draft Supply Chain Security Guidance for the Downstream Gas and Electricity (DGE) sector. The consultation aims to encourage a consistent, proportionate and outcomes-based approach to managing supply chain security risks across different types of supplier relationships. Stakeholders are invited to comment on the clarity, practicality and implementation of the proposed principles, outcomes and risk-based supplier criticality framework. Ofgem is also seeking evidence on the extent to which the draft guidance aligns with existing operational, engineering, assurance and commercial practices, including where further clarification or illustrative examples may be helpful. The consultation closes on 29 June 2026.
NEWS
Ofgem has launched a consultation, seeking views on detailed policy proposals regarding: (1) the future objectives and strategy-setting process; (2) the operational model; and (3) the scope and governance of the Successor Licensee to the Data Communications Company (DCC) licence, which will expire in September 2027. The consultation closes on 14 July 2025, with Ofgem intending to publish its decision in August 2025, followed by a further consultation on the draft successor licence to reflect its policy decisions. This represents the final consultation under Phase 2 of the DCC review programme. Ofgem has also commenced and will continue the process of identifying and selecting the Successor Licensee.
NEWS
Ofgem has launched a consultation to inform the ten-year review of the Capacity Market Rules, due to be published by 1 August 2024. The consultation sets out objectives intended to be achieved by these rules and seeks inputs from stakeholders as to whether the rules continue to meet these objectives, the objectives remain appropriate, and if they could require less administrative burden. The deadline to respond to the consultation is 19 February 2024.
NEWS
Ofgem has launched a consultation on its preliminary Strategic Direction Statement (SDS) and accompanying governance arrangements for industry codes. The preliminary SDS serves as a precursor to the statutory SDS that will be published following industry code designation. It covers all industry codes within the scope of code governance reform and sets out a five-year outlook, with a focus on the next 1-2 years. Ofgem proposes roles and responsibilities for SDS implementation and details proposals to progress SDS-related code changes under existing governance. Alongside this, Ofgem is seeking views on introducing a consistent modification prioritisation process across industry codes and a new licence obligation to co-operate with the code modification process where it supports SDS alignment. The consultation closes on 28 March 2025.
NEWS
Ofgem has launched a consultation on its minded-to-position to approve the original proposal of Connection and Use of System Code (CUSC) modification CMP448. The modification seeks to introduce a progression commitment fee to incentivise regular self-assessment of project readiness in the Gate 2 connections queue and to encourage the timely exit of less committed projects. The fee would start at £2,500/MW, increasing by £2,500/MW every six months up to a cap of £10,000/MW, and would apply to generation projects that have accepted a Gate 2 connection offer but have not yet passed Queue Management Milestone 1. Ofgem's minded-to position favours the original proposal over the two alternative modifications (WACM1 and WACM2), concluding it best facilitates the applicable CUSC objectives. The consultation closes on 3 November 2025. Alongside this, Ofgem has published an impact assessment setting out the analysis underpinning CMP448 and explaining the rationale for recommending the original proposal.
NEWS
Ofgem is consulting on the evaluation criteria proposed to form part of the new Distribution System Operation (DSO) incentive as part of the RIIO-ED2 price control for electricity distribution network operators. Three evaluation criteria were described in its RIIO-ED2 Final Determinations, namely a stakeholder survey, a performance panel assessment and three outturn performance metrics. Ofgem is now consulting on proposals for the outturn performance metrics and welcomes responses from electricity Distribution Network Operators and their stakeholders, as well as responses from other stakeholders and the public. The response deadline is 15 March 2024.
NEWS
Ofgem has opened a consultation on its forward work programme for 2026–2027, outlining planned projects across the retail, wholesale, networks and carbon capture sectors. Stakeholders including industry, consumer groups, charities and energy consumers are invited to respond. The consultation is open until 5:00 pm on 12 February 2026 and Ofgem will publish the final Forward Work Programme by 31 March 2026.
NEWS
Ofgem has launched a consultation on its proposed approach to administering the Bill Discount Scheme, which will provide eligible households located near new or upgraded electricity transmission infrastructure with electricity bill discounts. The consultation seeks views on the proposed administrative arrangements for determining household eligibility, making payments, managing communications, complaints and appeals, monitoring compliance and fraud, reconciling supplier payments and handling reporting and data management ahead of the scheme's expected launch in early 2027. Ofgem proposes that most eligible households will receive bill discounts automatically through their electricity supplier, while eligible households that cannot receive payments automatically, such as those supplied through commercial meters or living off-grid, will be able to apply through an opt-in process. The consultation also sets out proposals for eligibility verification, payment processes, supplier and transmission owner responsibilities, audit and enforcement arrangements and annual reporting. The consultation closes on 8 September 2026.
NEWS
Ofgem has launched a consultation seeking views on the proposed methodology and Regulatory Instructions and Guidance (RIGs) for assessing company performance under the RIIO-2 network price control period (31 March 2026). The proposed methodology explains how Ofgem will assess delivery against risk outputs, determine funding adjustments, apply penalties where delivery falls below expectations and treat identifiable elements, changes in risk outside companies’ control and projects extending into RIIO-3 price controls. Ofgem is also consulting on proposed modifications to the Network Asset Risk Metric (NARM) RIGs and reporting templates, which will form the basis of companies’ NARM closeout submissions. The consultation closes on 24 June 2026.