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NEWS
Ofgem has published its decision on the continuation of the Data Communications Company (DCC)'s Smart Meter Communication Licence (DCC Licence), as well as the revised rates of the Shared Service Charge (SSC) and Baseline Margin (BM). The DCC Licence is set to expire in September 2025. In preparation for this expiry, Ofgem is reviewing the regulatory arrangement with the DCC and has consulted on options for extending the Licence. The decision sets out the duration of the Additional Licence Term for which the DCC Licence should be continued under Part 1 section C of the Licence (following Ofgem's July 2024 consultation) and the revised levels of the BM and SSC rates to apply from 1 April 2025 (following Ofgem's November 2023 consultation).
NEWS
Ofgem has published a decision setting out its policy conclusions on the future operational model and objectives for the Successor Licensee to the Data Communications Company (DCC). The decision follows Ofgem's June 2025 consultation and forms part of its review of the DCC's regulatory arrangements ahead of its licence expiry in September 2027. The decision requires the new licensee to produce a Business Strategy and Technology Roadmap. It introduces a Primary Objective focused on consumer-centric service delivery and establishes three Supporting Objectives covering innovation, competition and environmental impacts, while maintaining the current approach to Fundamental Service Capability contracts. In addition, new procurement principles emphasising environmental and consumer considerations have been introduced. This decision will be followed by a consultation on the draft conditions of the Successor Licence.
NEWS
Ofgem has published its decision on the future governance arrangements for the Data Communications Company (DCC), as part of its ongoing review of the DCC's regulatory framework ahead of its licence expiry in September 2027. The decision addresses key aspects of DCC's governance structure, including board composition, appointment and requirements, incentivisation of the board, executive leadership, and staff, as well as interim governance changes. Ofgem intends to publish a third policy consultation by the end of Q1 2025, focusing on the DCC’s future role, objectives, and operating model.
NEWS
Ofgem has published its decision on modifications to the Electricity System Operator Licence for early competition in onshore electricity transmission. The decision introduces a new licence condition governing the National Energy System Operator’s (NESO) role as delivery body for onshore competition and modifies an existing condition on definitions. The changes formalise NESO’s role and introduce obligations relating to tender documentation for Ofgem approval, information provision to bidders, compliance with the Onshore Competition Information Exchange Guidance and the efficient and effective conduct of onshore transmission tender exercises. The modifications will take effect on 31 July 2026, following a standard 56–day implementation period.
NEWS
Ofgem has published its decision to proceed with the proposed modifications to the Special and Standard Special licence conditions for Gas Transporters held by National Gas Transmission Plc and the Gas Distribution Network Operators, extending the current end date of the sunset conditions to 31 December 2025. The licence changes will come into effect on 1 January 2025.
NEWS
Ofgem has published its decision and directions on the Hydrogen Village Trial (HVT) Stage 2 close down. This follows Ofgem’s July 2024 consultation, which instructed Cadent Gas Ltd, Northern Gas Networks Limited, and National Gas Transmission to reimburse gas consumers for a funding overpayment for HVT Stage 2, resulting from an incorrect price base used to calculate the approved amount for Stage 2, as well as to recover underspends against the Stage 2 funding amount.
NEWS
Ofgem has published its decision on the National Energy System Operator (NESO)’s performance incentives framework for its third Business Plan cycle (BP3), running from 1 April 2025 to 31 March 2026. This decision marks the second phase in implementing NESO's new regulatory framework and the final BP cycle within the RIIO-2 framework. Ofgem’s decisions address performance incentives, business plan and assessment, cost regulation, and stakeholder and external scrutiny. Ofgem also intends to consult on a longer-term regulatory approach before the conclusion of the RIIO-2 price control on 31 March 2026.
NEWS
Ofgem has issued a decision following a consultation issued in December 2023 on modifications to the special conditions of National Grid Electricity Transmission Plc's electricity transmission licence. Ofgem will be making the licence modifications, with small amendments, incorporating provisions to implement elements of the RIIO-T1 closeout methodology.
NEWS
Ofgem has published its decision on the evolution of the Offshore Transmission Owner (OFTO) regime, following its December 2024 consultation. The decision maintains the 98% availability target for extension periods, sets the performance reserve at 50% of the annual End of Revenue Support (ERS), and allows partial awards for investment works. In cases of early exit, ERS payments will continue for up to 12 months after generation ceases or until the extension period ends, whichever comes first. Ofgem also intends to consult on licence modifications that would define an event as a major failure if it is not covered by an insurance policy and if the cost of repair exceeds 25% of the annual ERS.
NEWS
Ofgem has published its decision on the methodologies that it will apply for the electricity and gas transmission and gas distribution sectors for the RIIO-3 price control period, which will run from 1 April 2026 to 31 March 2031. It also details Ofgem’s decisions on specific issues for which it sought views from respondents in its consultation in December 2023.
NEWS
Ofgem has published a decision, confirming its approval of the National Energy System Operator (NESO)'s TMO4+ grid connections reform package, following its February 2025 minded-to consultation. Ofgem has also published subsidiary documents, including decisions on: (1) code modifications, namely CM095, CMP434, and CMP435; (2) connections methodologies, namely the Gate 2 Criteria Methodology, Connections Network Design Methodology, and Project Designation Methodology; and (3) licence changes, along with an accompanying impact assessment. The TMO4+ package enables a new connections process that reforms the existing queue, which currently holds over 750GW of projects, by prioritising those deemed 'ready' and 'needed' under the Clean Power 2030 Action Plan. These projects will be placed in a firm Gate 2 queue, while those that do not meet these criteria will be deprioritised to an indicative Gate 1 queue. The reforms aim to unlock £40bn in private investment annually and accelerate grid connections for industries such as data centres. NESO also highlighted that the Transmission Impact Assessment (TIA) modification CMP446 is expected to be approved in Spring 2025. CMP446 seeks to support smaller energy projects, such as micro solar and community energy, by lowering the threshold for TIA evaluations, enabling these projects to proceed without waiting for large transmission upgrades.
NEWS
Ofgem has published its decision to not proceed with the proposed modification to introduce Section F to the Generation Licence, following its April 2024 statutory consultation. The document sets out Ofgem’s rationale for the decision.