Ofgem has launched a call for input on draft special licence conditions for long-duration electricity storage (LDES) projects under the cap-and-floor scheme, seeking stakeholder views ahead of a statutory consultation expected in summer 2026. The proposed conditions would be implemented through modifications to the standard electricity generation licence and are intended to establish the operational framework for LDES projects awarded support under the regime. The draft addresses areas including revenue calculation methodologies, availability requirements, treatment of construction cost overruns, financial resilience provisions, and governance of the cap-and-floor financial models. Ofgem states that it is particularly seeking views on key policy areas such as the approach to setting floor levels, the treatment of market-related costs and optimiser fees, availability requirements for storage assets, and controls on structured transactions and revenue maximisation. Ofgem is also seeking evidence on developing policy issues, including obligations during system stress events, cybersecurity expectations, governance of algorithmic optimisation, and the potential consumer impacts of repetitive re-trading in electricity markets. The call for input closes on 20 April 2026.

Ofgem has launched a call for input on its proposals to develop an early competition Offshore Transmission Owner (OFTO) build model, designed to support the delivery of non-radial offshore transmission assets and streamline coordination across offshore wind projects. Ofgem seeks views on: (1) the design and scope of the model; (2) potential centralised tender approaches, where Ofgem could trigger tenders; and (3) opportunities for alignment with the onshore Competitively Appointed Transmission Owner (CATO) framework. The consultation closes on 30 October 2025.

Ofgem has published a call for input seeking views on whether there are fairer and more efficient ways to allocate and recover energy system costs, including looking at a range of potential alternative pricing models for consumers. The review forms part of Ofgem’s work to support the transition to a cleaner, more secure and resilient energy system as the make-up of system costs changes due to reduced reliance on fossil fuels and increased investment in infrastructure. It plans to explore how costs can be shared to support smarter and more efficient energy use, improve protections for consumers and contribute to decarbonisation and economic growth.

Ofgem has launched a call for input on a proposal to create a technical sandbox for testing artificial intelligence (AI) applications in the energy sector. The sandbox would provide a controlled environment for participants, such as licensees, regulated entities, technology developers and data providers, to safely design, test, and evaluate AI models, datasets, and system behaviours. It aims to support innovation within a supervised setting, while helping Ofgem build its regulatory understanding and inform future frameworks. The sandbox would also help manage and mitigate risks associated with AI, including algorithmic bias and security concerns. The call for input closes on 18 September 2025.

Ofgem has launched a call for input on the design of locational charges and regulatory siting levers under the reformed national pricing (RNP) programme. The call for input explores options for how locational charges could be designed to support delivery of RNP, ranging from incremental to substantial changes to the current transmission network charging regime, and sets out initial thinking on legacy and transitional arrangements for projects at advanced stages of development. The call for input closes on 26 May 2026.

Ofgem has launched a consultation into proposed modifications to the RIIO-2 Regulatory Financial Performance Reporting (RFPR) template and guidance for electricity transmission networks, gas distribution networks and the Electricity System Operator. This consultation will close on 24 May 2024.

Ofgem has launched a consultation on proposed amendments to the Capacity Market (CM) Rules, setting out 13 change proposals aimed at improving clarity, operational efficiency and delivery assurance across the CM framework. The rules provide the detailed framework for the operation of the CM established under the Energy Act 2013 and the Electricity Capacity Regulations 2014, SI 2014/2043. The consultation closes on 24 May 2026.

Ofgem has launched a consultation on the proposed Independent System Operator and Planner Roles Guidance, the Independent System Operator and Planner Reporting and Incentives Governance Document and the Future Systems Operator Transition Funding Governance Document which would be established under the National Energy System Operator’s (NESO) new licences. The consultation is seeking views on NESO's 'Day 1' changes and Ofgem plans to consult on broader regulatory changes before the end of the Electricity System Operator business plan period and RIIO-2 price control. The consultation will close on 5 July 2024.

Ofgem has launched a consultation on a draft CO2 Transport and Storage Enforcement Guidelines and Penalty Policy. Under the Energy Act 2023, Ofgem will be responsible for regulating the transportation and storage networks of CO2 in the UK and these networks will form part of the infrastructure needed for carbon capture, usage and storage (CCUS). The aim of the draft policy is to provide greater clarity, consistency and transparency to enforcement policies and processes, as well as to describe the framework that is in place to maximise the impact and efficiency of CCUS enforcement. Ofgem invites views on the proposals from CO2 transport and storage network companies, network users and any other party interested in CCUS enforcement. The consultation closes on 3 July 2024.

Ofgem has launched a consultation on the Data Communications Company’s (DCC) Required Revenue for November 2026 to March 2028, marking the first use of a forward-looking ‘ex-ante’ price control framework for Great Britain’s smart metering network. Ofgem proposes allowing DCC revenues of £1.091 billion over the 17-month period, around £70 million lower than DCC’s £1.162 billion request, after reducing allowances for areas including Smart Metering Equipment Technical Specifications  (SMETS1) operational costs, switching service procurement, future system management and licence renewal activities. Ofgem said the new framework is intended to improve transparency, cost predictability and value for money by assessing costs before they are incurred, while continuing to support reliable smart metering services. The consultation also proposes ringfenced budgets for major programmes, including long-range radio network upgrades, Data Service Provider 2.0 (DSP2) system delivery, post-quantum cryptography and future 4G connectivity, alongside automatic revenue adjustment mechanisms for costs outside DCC’s direct control, such as inflation-linked contracts and volume-driven communications hub costs. Ofgem stated that DCC had generally justified most of its proposed spending but identified weaknesses in forecasting, internal cost evidence and some change programmes, and said it expects stronger cost control, improved contract management and reduced reliance on consultants under the new regime. The consultation closes on 14 July 2026.

Ofgem has launched a consultation, seeking stakeholder views on Scottish Hydro Electric Transmission (SHET)’s application for Early Construction Funding (ECF) for eight electricity transmission projects. This initiative is part of the Accelerated Strategic Transmission Investment framework, aimed at expediting the delivery of strategic transmission projects to aid the government's goal of connecting 50 gigawatts of offshore generation to the electricity network by 2030. ECF would enable SHET to commence early construction activities prior to obtaining planning permission. Ofgem is also proposing modifications to SHET's electricity transmission licence to facilitate this funding mechanism. The consultation closes on 10 January 2025.

Ofgem has launched a consultation on the methodology for the third electricity distribution price control (ED3), which will apply to Great Britain's electricity distribution networks from 1 April 2028 to 31 March 2033. The consultation follows Ofgem's ED3 Framework Decision and covers cost assessment, finance and climate resilience methodologies for the five-year price control period. The consultation runs until 3 December 2025.