Ofgem has published its decision on the proposed modifications to the Regulatory Instructions and Guidance (RIGs). These modifications are aimed at updating and clarifying the reporting requirements for the first year of RIIO-ED2. This decision follows Ofgem’s issuance of a notice on the proposed changes to RIGs for the electricity distribution networks. The modifications to the RIGs will take effect on 1 July 2024.

Ofgem has published its decision on guidance for offshore transmission health reviews, following its August 2024 consultation. These decisions provide technical details on the process for extending regulatory revenue periods for offshore transmission assets under the Offshore Transmission Owner (OFTO) regime. In addition, Ofgem has published its Health Review guidance, which outlines the procedures for generators and OFTOs to assess asset conditions, determine necessary investments, and evaluate the case for extensions. It also establishes protocols for information-sharing between generators, OFTOs, and Ofgem to inform decisions on the duration of extensions and corresponding extension revenue streams. Ofgem also intends to launch a further consultation on outstanding policy questions by the end of 2024.

Ofgem has published its decision on several important policy points that were referenced for further consideration in its March 2022 decision and February 2024 consultation on Early Competition in onshore electricity transmission networks. The decision includes Ofgem’s views on the National Grid Electricity System Operator’s proposed changes to the Early Competition model in its recently published Early Competition Implementation Update.

Ofgem has published its decision to implement a regulatory approval and funding framework for the onshore electricity transmission projects recommended in the Electricity System Operator (ESO)’s second transitional Centralised Strategic Network Plan (tC2NP2). This framework, which builds on the Accelerated Strategic Transmission Investment framework, enables Transmission Owners to progress recommended upgrades without delay. It will govern projects arising from ESO's proposal for a coordinated onshore and offshore network design, facilitating the connection of 21 gigawatts of additional offshore wind generation, and supporting the government's decarbonisation and net zero objectives. The framework also outlines the approval and funding processes for future projects in subsequent iterations of the ESO's network planning process.

Ofgem has published the decision for the three outturn performance metrics proposed as part of the Distribution System Operation incentive in the RIIO-ED2 Final Determinations. The decision follows a review of consultation responses where it was noted that it was impractical to set performance targets for RIIO-ED2 due to methodological problems, worries about data quality and the lack of historical data. As a result, the decision was made to implement an alternative approach which calls for Distribution Network Operators to report on performance in these areas by gathering information to enhance target-setting in the future.

Ofgem has published a decision outlining its support in implementing transitional arrangements to the electricity connection process for new connection applications, through the direction and comfort requests made by the National Grid Electricity System Operator (NGESO) and Transmission Owners (TOs). Ofgem has clarified that the NGESO and TOs will be responsible for the administration and implementation of the transitional arrangements process.

Ofgem has rejected Connection and Use of System Code (CUSC) Modification Proposal 444 (CMP444) as well as all seven alternative proposals that intended to introduce upper and lower limits on wider generation Transmission Network Use of System (TNUoS) charges. Ofgem concluded that these proposals would diminish cost-reflectivity and negatively impact the Applicable Charging Objectives overall, based on consultation responses following its July 2025 minded-to decision. As a result, the current TNUoS charging arrangements will remain in place.

Ofgem has published its decision directing the Electricity System Operator (ESO) to publish an updated Network Options Assessment (NOA) report by 31 January 2026, instead of 31 January 2025. This will allow more time for the ESO to work with Transmission Owners to develop the next NOA report. Ofgem has also decided to direct the ESO to submit the NOA methodology by 31 March 2025, instead of 1 August 2024, for approval by the Authority.

Ofgem has published its decision to reject Balancing and Settlement Code (BSC) Modification Proposal P471. This proposal intended to make an amendment to BSC Section E to allow more flexibility in procurement of BSC Agents.

Ofgem has published its decision to send back the Connection and Use of System Code (CUSC) Modification Proposal CMP344 ‘Clarification of Transmission Licensee revenue recovery and the treatment of revenue adjustments in the Charging Methodology’ to National Grid Electricity. Ofgem has decided it cannot form an opinion on CMP344 based on the submitted Final Modification Report (FMR) due to the lack of clarity and has sent it back for further work. The decision found that although the CMP344 intends to provide clarity of the CUSC arrangement, the modification goes beyond providing clarity and seeks to change aspects of the policy regarding offshore charging arrangements.

Ofgem has published its decision on the commercial framework for Early Competition in onshore electricity transmission. The framework sets out how Competitively Appointed Transmission Owners (CATOs) will finance, build, and operate transmission assets. It includes key elements such as a post-award security obligation capped at £50m for projects up to £1bn, a 35-year revenue period, and a 98% availability target. The framework implements provisions of the Energy Act 2023 (EnA 2023) and will be incorporated into the CATO electricity transmission licence. Further consultation on specific implementation details is expected later in 2025.

Ofgem has published two determinations, outlining its decisions, under section 187(1) of the Energy Act 2023 (EnA 2023) to proceed with the selection of code managers for the Balancing and Settlement Code (BSC) and the Retail Energy Code (REC) on a non-competitive basis. Following these determinations, the Retail Energy Code Company Ltd and Elexon Ltd will be requested to submit a licensing assessment form. Ofgem will then review this information and announce whether it intends to grant each company a licence.