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NEWS
Ofgem has launched a consultation on proposed modifications to Standard Licence Conditions (SLCs) 26A and 26B of the electricity interconnector licence. The consultation concerns amendments relating to delays to the cap and floor regime start date caused by pre-operational force majeure events. The consultation closes on 20 May 2026.
NEWS
Ofgem has launched a consultation on further proposed changes to the Offshore Electricity Transmission Owner (OFTO) regime. The consultation seeks stakeholder views on several proposals, including: (1) whether the 98% availability target for High Voltage Direct Current projects should be retained or revised; (2) measures relating to OFTO asset control; (3) the implementation of a nine-month Generator Commissioning Clause extension through the Planning and Infrastructure Bill; and (4) the creation of new bidder incentive mechanisms. The consultation closes on 25 August 2025.
NEWS
Ofgem has launched a consultation on extending the Ban on Acquisition only Tariffs (BAT) until 31 March 2026, following its July 2024 decision to retain the BAT until 31 March 2025. The BAT is a mechanism which prevents electricity suppliers from offering unsustainable fixed-term deals exclusively to new customers. Ofgem is seeking views on extending the BAT’s associated market-wide derogation for the same period, how well the BAT is currently functioning and whether any reforms to its operation could enable it to operate more effectively in the future. After concluding this consultation, Ofgem intends to issue a further statement in November 2024, setting out whether it will extend the BAT for a further year. The consultation closes on 6 November 2024.
NEWS
Ofgem has launched a consultation on draft guidance for fair pricing and cost allocation frameworks for heat networks. The guidance addresses the rules and requirements set out in heat network authorisation conditions relating to fair pricing and cost allocation mechanisms. It builds on Ofgem’s 2024 joint consultation with the Department for Energy Security and Net Zero on implementing consumer protections and its April 2025 consultation on fair pricing protections. The guidance covers principles such as cost-reflective pricing, cost efficiency, fair and reasonable returns, affordability, regulatory control and price transparency, as well as cost allocation practices. The consultation ends on 27 October 2025.
NEWS
Ofgem has launched a consultation on proposed licence changes to facilitate the implementation of the Target Model Options (TMO4+) connections reform. The consultation seeks stakeholder feedback on proposed amendments to the Electricity System Operator, Transmission, Distribution, Generation, and Interconnector licences. These changes are designed to align with the new gated connections process outlined in the proposed TMO4+ code modifications and methodologies, aiming to streamline the connections application procedure and replace the current first-come-first-served approach. In addition, new licence conditions are proposed to require the National Energy System Operator to develop and maintain three new connection methodologies. Ofgem intends to publish decisions on the full connections reform package, including licence changes, code modifications, and methodologies, in the first quarter of 2025. The consultation closes on 6 January 2025.
NEWS
Ofgem has launched a consultation proposing changes to its licence fee recovery principles to enable Ofgem to recover costs incurred in financial year 2024–2025 relating to the set up and operation of the regulatory framework for heat networks via licence fees. Ofgem would like views from anyone interested in the licence fee cost recovery principles, but it particularly welcomes views from gas transporters and electricity network operators. The consultation will run until 25 February 2024.
NEWS
Ofgem has launched a consultation on its minded-to decisions for the first application window of the Long Duration Electricity Storage (LDES) cap and floor scheme, proposing to support 16 projects with a combined capacity of 7,645MW. It says the selected projects would improve security of electricity supply, support renewable energy and provide value for consumers. The consultation closes on 7 August 2026.
NEWS
Ofgem has launched a consultation on the proposed policy framework for the market facilitator role in flexibility markets. This follows Ofgem’s July 2024 decision to appoint Elexon as the market facilitator, with operations expected to commence by the end of 2025. The consultation seeks stakeholder views on four key areas: the setup process, the scope of the facilitator's functions, roles, and responsibilities, proposed deliverables, and performance evaluation arrangements. Ofgem intends to publish its decision in spring 2025. The consultation closes on 11 February 2025.
NEWS
Ofgem has launched a consultation, seeking views on its minded-to decision to reject the Connection and Use of System Code (CUSC) Modification Proposal CMP444, which proposed introducing a cap and floor on wider generation Transmission Network Use of System (TNUoS) charges. Ofgem's preliminary assessment found that the proposal would adversely impact cost-reflectivity and administrative efficiency. The consultation closes on 11 August 2025, with a final decision expected before 30 September 2025.
NEWS
Ofgem has launched a statutory consultation on proposed modifications to the National Energy System Operator (NESO)’s electricity system operator (ESO) and electricity transmission (ET) licences. The proposals seek to modify conditions A1 (Definitions) and E7 (Transmission system security standard and quality of service) of the NESO’s ESO licence, requiring it to maintain the National Electricity Transmission System Security and Quality of Supply Standard (SQSS). In addition, Ofgem is also proposing to modify standard conditions D3 and E16 (Transmission system security standard and quality of service) of the NESO’s ET licence as a consequence of the proposed changes to the NESO’s ESO licence. The consultation closes on 6 November 2024.
NEWS
Ofgem has launched a consultation on proposed modifications to documents associated with the Revenue = Incentives + Innovation + Outputs (RIIO-3) price control framework. The consultation covers draft crossover guidance for gas distribution and transmission networks. This guidance sets out the methodology for GD2/GD3 and GT2/GT3 crossover adjustments to allowances. In addition, the proposal includes the incorporation of National Grid Electricity Transmission supplementary guidance as a specific appendix to the price control deliverable reporting requirements. The consultation closes on 13 May 2026.
NEWS
Ofgem has launched a consultation on proposed modifications to implement changes to a collection of industry codes, to enable the establishment of the National Energy System Operator (NESO)(also known as the Independent System Operator and Planner (ISOP)) in accordance with its statutory functions, duties and licence conditions. It is anticipated that the finalised modifications will take effect on the date when the designation of the NESO comes into effect, following notice by the Secretary of State of the Department for Energy Security and Net Zero. The consultation closes on 17 June 2024.