Ofgem are consulting on proposals for the structure, objectives and principles of a fair pricing framework for heat networks. This consultation closes on 9 July 2025.

Ofgem has published the response to its May 2024 consultation on the proposed CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement. Alongside this response, Ofgem has also published the final versions of the CO2 Transport and Storage Enforcement Guidelines and Penalty Policy Statement. These aim to provide greater clarity, consistency, and transparency on its enforcement policies and processes and describe the framework in place to maximise the impact and efficiency of its work.

Ofgem, in conjunction with the Department for Energy Security and Net Zero, has published a response to the statutory consultation on industry code modifications to implement the Independent System Operator and Planner (ISOP), published in May 2024. This response details the decisions taken by both organisations on the modifications to several industry codes and their associated documents, on which the relevant authorities intends to exercise powers under section 169 of the Energy Act 2023 in order to directly modify these codes. These modifications seek to implement changes to the codes to ensure that they are coherent with the establishment of the ISOP and changes to the regulatory framework in line with its statutory functions, duties, and licence conditions.

Ofgem has published its decision for the Distribution Connection and Use of System Agreement (DCUSA) Modification Proposal 425. This proposal seeks to provide further clarification as to how Reinforcement costs are apportioned between the Company and the Customer (a Generation Connection) when the High-Cost Project Threshold is triggered.

Ofgem has published its decision on the Associated Documents (ADs) to the proposed National Energy System Operator (NESO) licences. Ofgem has published three documents, which are associated with and established under the Electricity System Operator (ESO) and Gas System Planner (GSP) licences that are due to be held by the NESO. These ADs will become effective from 1 October 2024, when the NESO's designation as the Independent System Operator and Planner and the NESO’s ESO and GSP licences, come into force. These documents detail the NESO’s performance regulation from 1 October 2024 until 31 March 2025. In addition, Ofgem issued a notice ahead of the publication of the electricity licensing direction by the Secretary of State for Energy Security and Net Zero, Ed Miliband, on 13 September 2024, setting out the relevant matters previously made or issued by Ofgem that will either be revoked or modified under the ESO licence when the NESO becomes operational.

Ofgem has published its decision to approve Balancing and Settlement Code (BSC) Modification P455. This modification amends the BSC and introduces a new methodology for meter data collection and aggregation for domestic and small business consumers located on microgrids (referred to as private networks or licence-exempt distribution networks) that are currently supplied by an on-site licence-exempt supplier. Ofgem has concluded that this modification will better deliver the BSC’s objectives and introduce choice to domestic and small business consumers on microgrids who were unable to switch their energy supplier.

Ofgem has published its decision to approve the proposed solution for Balancing and Settlement Code (BSC) Modification P469, titled ‘Credit Default Refusal and Rejection Period’. This modification amends the BSC by extending the start of the Credit Default Refusal Period by two hours and the Credit Default Rejection Period by half an hour. It will provide market participants with more time to rearrange energy trades that were refused or rejected because of a counterparty reaching its credit limits for trading.

Ofgem has published its authority decision on the proposed Balancing and Settlement Code (BSC) modification P467. Following P448, P467 was raised by National Grid Electricity System Operator as a modification to remove bids from the cash out stack by winter 2024/25 to keep the current bids as they are, but not include them within the stack.

Ofgem has published its decision approving Capacity Market (CM) Rules change proposal CP388, following a statutory consultation launched on 27 June 2025. The approved change allows Transmission Network connected New Build CM Units that have requested a connection date advancement through the TMO4+ process to conditionally prequalify for the 2029/30 T-4 Auction. Ofgem modified the original proposal by reducing the deadline for submitting Grid Connection Agreements to 16 working days before the first bidding round and permitting the submission of unsigned agreements. These changes will take effect from the opening of the 2025 prequalification submission window and will apply solely to the 2029/30 T-4 Auction.

Ofgem has published its decision on five Capacity Market (CM) rule change proposals—CP371, CP376, CP377, CP378, CP381—following its January 2025 consultation. Ofgem approved three proposals with no or only minor alterations: CP376 (Clarifying Restrictions on the Role of Agent); CP377 (Increasing Flexibility for Satisfactory Performance Day Portfolios) and CP381 (Change to the definition of Station Connection Entry Capacity in Rule 3.5.5). It also approved CP371 (Protection from Very Late Network Connections) with significant alterations, and rejected CP378 (Removing 50MW Limit on Individual CM Units in a Portfolio). The approved changes will take effect once laid before Parliament, ahead of the 2025 Prequalification Window.

Ofgem has published its decision on Capacity Market Rule change proposal CP391, approving amendments to the Capacity Market Rules to enable the use of Market-Wide Half-Hourly Settlement (MWHS) systems for the Supplier Metering Solution Configuration. The amendments update metering-related definitions and processes to reflect the new settlement systems introduced under the MWHS Programme, replacing references to legacy settlement agents and recognising new services, including the Advanced Data Service and the Market-wide Data Service. The decision also incorporates stakeholder feedback by adding a definition of Smart Data Service to the Capacity Market Rules.

Ofem has published its decision to revise the licence conditions requiring publication of Consolidated Segmental Statements (CSS). The changes will expand the CSS reporting obligation to a wider proportion of the domestic and non-domestic markets and increase supplier profitability transparency. The decision follows a policy consultation in August 2023 and a statutory consultation in November 2023. The changes will take effect from 29 March 2024.