Ofgem has published its decision on the process for appointing a Successor Licensee for the Smart Meter Communication Licence (DCC Licence). This decision follows Ofgem's consultation conducted between July and August 2024, which considered changes to the granting of DCC Licences under the Gas Act 1986 and the Electricity Act 1989. The decision sets out Ofgem's conclusions and next steps, including seeking additional flexibility in the appointment process of the Successor Licensee to ensure that a new Licence framework can be promptly introduced. Ofgem also confirmed that it will request the government to expedite the implementation of appropriate legislation.

Ofgem has published its decision to implement operational changes to the Renewables Obligation (RO) and Customer Credit Balance (CCB) ringfencing guidance and templates to provide greater clarity and readability. These changes will take immediate effect.

Ofgem has published its decision on the proposed changes to Special Licence Condition (SLC) 1.2 and 4.8 of the Electricity Distribution Licence (EDL), setting out its decision to modify the EDL to implement these changes. This follows Ofgem’s July 2024 consultation on the proposed changes. The licence modifications will come into effect on 21 November 2024.

Ofgem has published a decision, outlining its conclusions on the Data Communications Company (DCC)'s Allowed Revenue determination process as part of its review of the DCC's regulatory framework ahead of the Smart Meter Communication Licence's expiry in September 2027. Alongside this, Ofgem has launched two consultations. The first consultation proposes modifications to the Smart Meter Communication Licence, focusing on three key areas: (1) giving effect to its conclusions on the implementation of the ex-ante process for determining DCC's Allowed Revenue; (2) adjusting reporting requirement dates, such as the Price Control submission, to align with the Transfer Date; and (3) amending the mechanisms for both the Baseline Margin Adjustment and External Contract Gain Share. A few housekeeping changes are also proposed. The second consultation seeks views on two draft documents: the Terms of Reference for the DCC's Customer Challenge Group and the Business Plan Guidance, both intended to support the DCC in preparing for its first ex-ante cost control cycle. Both consultations close on 6 June 2025.

Ofgem has published its decision to issue a new set of directions for Market-wide Half-Hourly Settlement (MHHS) participants. These directions are intended to ensure that all participants meet their responsibilities in delivering the MHHS Programme milestones in line with the existing MHHS Implementation Timetable.

Ofgem has published its decision on the enduring regulatory framework for the National Energy System Operator (NESO), which will apply from 1 April 2026, following its May 2025 consultation. This framework represents the third stage of Ofgem’s phased implementation of NESO’s regulatory framework, and the first regulatory period following the conclusion of the RIIO-2 framework. Alongside this, Ofgem has published the final version of the NESO Business Plan Guidance. The guidance sets out key dates for: (1) the submission and determination of the Business Plan; (2) Business Plan content; (3) Ofgem’s assessment approach; and (4) the duration of the Business Plan cycle.

Ofgem has published its decision on the energy code manager selection policy under the Energy Act 2023 (EnA 2023), following its November 2024 consultation. Code managers will be selected through a three-stage process comprising an initial eligibility assessment, a licensing assessment, and an implementation and assurance process. In determining the appropriate selection route, Ofgem will consider factors such as speed of delivery and value for money. As a result, a non-competitive selection process will be used for both the Balancing and Settlement Code and the Retail Energy Code. Selection routes for the three consolidated codes will be based on feedback from a public expression of interest process, while the decision on the Smart Energy Code manager has been deferred pending further updates. Additionally, Ofgem confirmed that code manager licences will be granted on an enduring basis. It also plans to introduce regulations for the competitive selection of code managers under EnA 2023, s 189, with the Department for Energy Security and Net Zero expected to lay these regulations in Parliament later in 2025. Ofgem has also published updated guidance on the code manager selection process.

Ofgem has published its decision on the financial parameters for the third application window (Window 3) of the cap and floor regime for electricity interconnectors, following two consultations held in September 2023 and July 2024. Key changes include removing the Retail Prices Index and adopting the Consumer Prices Index including owner occupiers' housing costs as the primary inflation measure (CPIH), with the Consumer Prices Index (CPI) serving as an interim proxy. These decisions will inform the development of a revised Cap and Floor Regime Handbook for Window 3 projects and may also be applicable to future application windows for cap and floor interconnector projects.

Ofgem has published its decision to retain the ban on acquisition-only tariffs (BAT) until its expiry on 31 March 2025. Ofgem has also indicated its intention for the BAT to remain in place subsequent to this date until longer-term decisions on the future of the retail market have been made.

Ofgem has published its decision on the operator of the Centralised Registration Service (CRS) for smart metering as part of phase 2 of its review of the Data Communications Company (DCC)'s regulatory arrangements. It has decided to retain responsibility for the CRS with the DCC under the Smart Meter Communication Licence. Ofgem also intends to publish separate decisions on other consulted areas of DCC governance, including board composition, appointment requirements, and incentivisation. Additionally, it will launch two further consultations during this phase, addressing allowed revenue determination and the future role, objectives, and operating model of the DCC.

Ofgem has published its decision on the modified versions of the National Grid Electricity System Operator Limited (ESO)’s Regulatory Instructions and Guidance (RIG) and Regulatory Reporting Pack (RRP) for RIIO-2. These modifications reflect the costs relating to the New Roles, Future System Operation Transition costs, National Grid payments, and the introduction of the fixed Balancing Services Use of System tariffs. This decision follows Ofgem’s issuance of a notice in May 2024 on the proposed modifications to the ESO RIGs and RRPs for RIIO-2. The modifications will take effect from 25 July 2024.

Ofgem has published its decision on the modifications to the Regulatory Financial Performance Reporting (RFPR) template and guidance for RIIO-2. These modifications are aimed at clarifying the reporting requirements for network licensees, taking effect from 28 June 2024. This decision follows Ofgem’s issuance of a notice on the proposed modifications to the RFPR template and guidance for RIIO-2.