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NEWS
Ofgem has launched a consultation on developing a new ex-ante cost control framework for the Data Communications Company (DCC), to be implemented under a Successor Licence from 2027. The proposals, part of Phase 2 of Ofgem's DCC regulatory review, include transitioning towards ex-ante business planning under the current licence and establishing a new Customer Challenge Group. The consultation, open until 6 February 2025, seeks stakeholder views to shape the future DCC cost control arrangements. Ofgem will host an explanatory workshop on 21 January 2025 focused on the proposed Customer Challenge Group.
NEWS
Ofgem has launched a consultation on proposals for a regulatory approval and funding framework for the onshore electricity transmission projects, as recommended by the Electricity System Operator in its latest transitional Centralised Strategic Network Plan 2 (CSNP2) in March 2024. It also comprises proposals to introduce a formalised project scope change governance process for these projects. The consultation closes on 30 August 2024. Ofgem expects to publish its decision in Autumn 2024.
NEWS
Ofgem has launched a consultation on proposed changes to the Contracts for Difference (CfD) cost allowance within the energy price cap to improve the accuracy of the allowance and reduce risks faced by energy suppliers. Ofgem proposes introducing a volume reconciliation mechanism to account for differences between forecast and actual CfD generation volumes, including the effects of capture price risk, while retaining suppliers' responsibility for managing price risk through hedging. The proposed reconciliation would apply in both directions, ensuring suppliers recover additional costs where actual CfD costs exceed forecasts and return savings to consumers where costs are lower than forecast. Ofgem also proposes recovering reconciliation amounts over a rolling six-month period and implementing the changes from the April to June 2027 price cap period. The consultation closes on 10 September 2026.
NEWS
The Office of Gas and Electricity Markets (Ofgem) has launched a consultation on proposed modifications to the ring-fence licence conditions for gas and electricity network companies following its Energy Networks Ring-fence Review. The proposed changes are intended to strengthen the financial resilience of network licensees, improve governance and transparency, increase the early identification of emerging financial risks and align regulatory requirements across network sectors. Ofgem states that the measures are designed to ensure the regulatory framework remains fit for purpose as the energy system evolves while continuing to support consumer protection and investment. The consultation closes on 12 August 2026.
NEWS
The Office of Gas and Electricity Markets (Ofgem) has initiated a consultation on its proposed Forward Work Programme for 2025 and 2026. This consultation, which closes on 10 February 2025 at 17:00, invites input from a wide range of stakeholders, including those in the energy industry, consumer groups, and charities. The proposed programme outlines Ofgem's planned activities in energy policy and regulation for the upcoming two-year period. Interested parties are encouraged to submit their views via email to FWP@Ofgem.gov.uk. Following the consultation, Ofgem intends to publish its finalised Forward Work Programme by 31 March 2025, setting out its regulatory agenda for the energy sector in the specified timeframe.
NEWS
Ofgem has launched a consultation seeking views from network companies on the proposed interim Regulatory Reporting Packs (RRPs), containing revenue sheets only and associated Price Control Financial Model (PCFM) guidance for the electricity transmission, gas transmission and gas distribution sectors that licensees are intending to use for the Annual Iteration Process in 2026. These documents reflect the new RIIO-3 licence conditions effective from 1 April. The interim RRPs will subsequently be incorporated into the full RRPs ahead of the reporting submission due in July 2027, relating to the 2026–27 reporting year. The consultation closes on 23 June 2026 with the decision expected to be published on 31 July 2026.
NEWS
Ofgem has launched a consultation on proposed reforms to electricity demand connections to reduce speculative data centre projects in Great Britain's electricity connections queue and prioritise network capacity for viable developments. The proposals include a refundable Data Centre Commitment Fee of £237,500 to £712,500 per megawatt for relevant large data centre projects, which would be forfeited if a project exits the queue before energisation, and new project-specific queue management milestones requiring developers to demonstrate financial capability, technical readiness, procurement of long-lead electrical equipment and credible end-user demand. The reforms form part of Ofgem's wider Demand Connections Reform programme, developed with the Department for Energy Security and Net Zero (DESNZ) and the National Energy System Operator (NESO), and are intended to improve network planning, protect consumers and accelerate connections for investment-ready projects. The consultation closes on 16 September 2026.
NEWS
Ofgem has launched a consultation on further detailed regime parameters for the Offshore Hybrid Asset (OHA) pilot scheme. These are additional to the high-level regime parameters comprised in section 7 and Appendix 1 of Ofgem’s February 2024 decision on the Regulatory Framework for the Non-Standard Interconnectors (NSIs) of the OHA pilot scheme. The pilot scheme includes the proposed LionLink and Nautilus NSIs, which are to run from the UK to offshore converter stations, linked to offshore wind farms in the Netherlands and Belgium. The consultation closes on 18 October 2024.
NEWS
Ofgem has launched a consultation on proposed changes to the regulatory framework governing electricity grid connections, as part of its connections end-to-end review. Ofgem is also seeking feedback on the connections incentives for the RIIO T3 price control. The consultation invites responses from regulated parties, including network companies and the National Electricity System Operator, as well as other stakeholders. The consultation closes on 13 January 2025.
NEWS
Ofgem has launched a consultation proposing the creation of a new bespoke licensable activity for dedicated providers of network services. The consultation aims to address regulatory oversight gaps in the current framework where commercial providers of critical network services—such as reactive power and system stability—operate under interim licensing arrangements or without licences. The proposal follows Ofgem's review of existing arrangements and seeks industry responses by 9 May 2025, via NESORegulation@ofgem.gov.uk.
NEWS
Ofgem has launched a consultation to review Levelisation Phase 1, implemented in April 2024, which adjusted standing charges between prepayment meter and Direct Debit customers. Ofgem is seeking views on its proposed scope and evaluation framework, including a draft Request for Information to energy suppliers. The review aims to assess the impact and operation of the policy within its first year, focusing on levelisation administration costs, fixed tariffs, and supplier experiences of the reconciliation mechanism. Ofgem is calling for feedback from energy suppliers and interested parties by 6 February 2025.
NEWS
Ofgem has opened two linked Calls for Input: (1) proposals for a new set of cross-cutting 'Consumer Outcomes' to guide an outcomes-based regulatory approach, and (2) a root-and-branch review of the supplier Guaranteed Standards of Performance (GSoP). Both are open until 22 January 2026 and are intended to shape a simpler framework that protects consumers while enabling innovation.