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NEWS
Ofgem has published its Green Gas Support Scheme (GGSS) quarterly report Issue 10, which provides an update on the GGSS from the fourth quarter of scheme year 3, from 1 January to 31 March 2024. GGSS is designed to support the deployment of new anaerobic digestion (AD) biomethane plants to increase the proportion of green gas in the gas grid.
NEWS
Ofgem has published the final Innovative Delivery Incentive Guidance Document for the Innovative Delivery financial output delivery incentive under the RIIO-ET3 electricity transmission price control, following a consultation held from 22 July to 22 August 2026. The guidance applies to National Grid Electricity Transmission Plc, Scottish Hydro Electric Transmission Plc and SP Transmission Plc. It sets out the requirements and eligibility criteria for submissions under the incentive, the process for assessing submissions and the methodology Ofgem will use to determine the value of any reward. Following its consultation, Ofgem has made several changes to the proposed guidance, including clarifying the eligibility and assessment criteria and introducing a phased reduction in overall rewards where a licensee performs below specified levels for outage management. Licensees seeking rewards under the incentive will be required to make submissions on the last working day of September 2027 and September 2029.
NEWS
Ofgem has published the Long Duration Electricity Storage (LDES) cap and floor financial model (CFFM) and accompanying handbook, setting out the financial framework applicable to LDES projects under Window 1 of the cap and floor scheme. The handbook explains the purpose, structure and operation of the LDES CFFM, detailing the building-blocks approach used to calculate revenue cap and floor levels, and describing the inputs, calculations and outputs of each worksheet in the model. The CFFM will be used to complete financial assessments for LDES Window 1 projects and to set initial cap and floor levels at regime award in summer 2026. The model will subsequently be updated with project-specific inputs at the Final Investment Decision or financial close to revise the initial administrative cap and floor levels, and, where relevant, the Actual Cost of Debt floor. A final update will follow the Post Construction Review to set the enduring cap and floor levels. Ofgem has appointed the Government Actuary's Department to review and provide quality assurance for the CFFM and handbook.
NEWS
Ofgem has published a Long Term Development Statement (LTDS) direction describing the characteristics and development of GB electricity distribution networks, in compliance with the standard conditions of the Electricity Distribution Licence placed on distribution network operators. The Form of Long Term Development Statement (FoS) was produced after a formal consultation period and introduces new requirements for grid model data to be provided using the common information model, along with the publication of capacity heatmap data. The LTDS direction letter sets out the key areas of feedback received at consultation, and the changes made as a result of this feedback.
NEWS
Ofgem has published the Non-Domestic Renewable Heat Incentive (NDRHI) Quarterly Report for 1 January - 31 March 2024. The NDRHI is a government environmental programme designed to increase the uptake of renewable and low carbon heating. The report outlines the number of accredited NDRHI installations and their cumulative capacity under the scheme, along with statistics for the number of applications to the NDRHI scheme awaiting decision.
NEWS
Ofgem, in conjunction with the Department for Energy Security and Net Zero (DESNZ), has published its response to the consultation on the National Energy System Operator (NESO) licences, setting out the decisions taken by both organisations on the content and shape of the licences. The consultation closed on 9 May 2024. Ofgem and DESNZ have also published the Electricity System Operator (ESO) licence direction and terms and conditions and the Gas System Planner (GSP) licence terms and conditions. In addition to this, Ofgem has published the Annexes and other connected documents, including amendments to existing licence conditions impacted by the NESO creation, an issues log, reasoning and effect of the new NESO conditions, and non-confidential stakeholder responses to the consultation.
NEWS
Ofgem has published draft determinations for the National Energy System Operator's (NESO) Business Plan 3, covering April 2025-March 2026. The consultation reviews NESO's proposed £690m internal costs—a 75% increase from previous forecasts—and eight performance objectives including clean power implementation and market reforms. This represents NESO's first business plan since becoming independent from National Grid in October 2024.
NEWS
Ofgem has published Regulatory Instructions and Guidance (RIGs) for offshore transmission owners that have been granted a licence under Tender Round 9, enabling them to complete the required reporting templates.
NEWS
Ofgem has published new Regulatory Instructions and Guidance (RIGs) for carbon dioxide transport and storage licensees. The RIGs set out how licensees should demonstrate compliance with their licence conditions and contain an overview document with reporting instructions, relevant definitions, and methodologies for data derivation where applicable. The RIGs also include reporting packs, such as the Regulatory Reporting Pack (RRP) templates for both NEP and LBCCS categories, and a Regulatory Financial Performance Reporting (RFPR) template for submitting numerical data.
NEWS
Ofgem published its decision on the RIIO-2 Network Asset Risk Metric (NARM) closeout methodology, following a consultation that closed on 25 June 2026. Ofgem has decided to implement the methodology with amendments, including clarifications to project status definitions and the treatment of RIIO-2 and RIIO-3 crossover projects. Updated NARM Regulatory Instructions and Guidance and reporting templates have also been issued for electricity transmission, gas transmission and gas distribution licensees. Licensees must submit their NARM closeout reports under Special Condition 3.1 by 31 October 2026. The RIIO-2 price control period ended on 31 March 2026.
NEWS
Ofgem has published its RIIO-3 business plan guidance document, which is aimed at electricity transmission, gas transmission, and gas distribution network companies and their stakeholders. The guidance outlines the information required in the network companies’ final business plans for RIIO-3 and how Ofgem will assess those plans to make its draft and final determinations in 2025.
NEWS
Ofgem has published its decision on the close out adjustments for the previous RIIO price control period (RIIO-ED1), summarising the value of adjustments for each onshore electricity distribution network owner business under RIIO-ED1, which ended on 31 March 2023. This follows Ofgem’s June 2024 consultation, where it sought views on the proposed adjustment values in each close out area. Ofgem has now assessed company performance for these areas and come to a decision on revenue adjustments to the licensees’ price control allowances under the applicable mechanisms.