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NEWS
Ofgem has published the Future Energy Pathways (FEP) guidance, which is an associated document linked to the National Energy System Operator (NESO)’s licences and conditions, following its August 2024 consultation. The guidance outlines the process for developing the FEP methodology, expectations for NESO's stakeholder engagement and collaboration, and Ofgem’s role in methodology development. It is issued under licence conditions C15 of the Electricity System Operator Licence and C10 of the Gas System Planner Licence.
NEWS
Ofgem has published new guidance outlining its administration of the Green Gas Levy (GGL), setting out details of new, current and former licenced gas suppliers' obligations under the Green Gas Support Scheme Regulations 2021, SI 2021/1335. The GGL funds the Green Gas Support Scheme by placing obligations on all licensed fossil fuel gas suppliers in Great Britain to pay a levy, and the scope of the guidance includes the provision of meter point data, credit cover and making levy payments for each licence suppliers hold. It further outlines the supplier compliance framework and powers Ofgem may use to encourage compliance with the scheme's requirements.
NEWS
Ofgem has published guidance setting out the multi-criteria assessment framework for evaluating eligible Long Duration Electricity Storage (LDES) projects under window 1 of the cap and floor regime. The framework includes specific assessment criteria for four storage technologies: compressed air, electro-chemical battery, liquified air and pumped storage hydro.
NEWS
Ofgem has published guidance setting out the regular data reporting requirements for authorised heat network suppliers and operators under the authorisation condition on the ‘Provision of Information to the Authority’. The guidance explains the data to be reported, whether it must be provided at organisation or heat network level, and the relevant reporting periods and submission windows.
NEWS
Ofgem has published two guidance documents under the Heat Networks (Market Framework) (Great Britain) Regulations 2025, SI 2025/269, addressing enforcement and penalties for non-compliance within the new heat networks regulatory regime.
NEWS
Ofgem has published guidance for the energy industry to assist in the calculation and application of the Default Tariff Cap models. The guidance covers publicly available inputs and sources for each of the Default Tariff Cap models.
NEWS
Ofgem has published a letter of recommendation to the Secretary of State (SoS) for Energy Security and Net Zero, Ed Miliband, proposing the designation of certain energy industry codes as 'qualifying documents' and central systems as 'qualifying central systems' under Schedule 12 of the Energy Act 2023 (EA 2023). This designation would enable Ofgem to utilise its transitional powers, as outlined in EA 2023, sch 12–13, to facilitate the implementation of energy code reform. This recommendation follows Ofgem’s January 2024 consultation and its subsequent August 2024 decision to proceed with its proposals.
NEWS
Ofgem has published a letter to suppliers on the Levelisation reconciliation mechanism audit requirements, detailing its expectations for suppliers to audit customer account data submitted to the Reconciliation Operator as part of the reconciliation process. This letter follows Ofgem’s previous communication about these requirements, which was sent to suppliers on 11 March 2024. This letter outlines the Agreed Upon Procedures and other requirements that supplier audits must comply with, details on the submission process for the letter confirming the outcome of the audit, as well as Ofgem’s requirements for sign-off for the audit.
NEWS
Ofgem has published a letter setting out the process and decision made on the classification of assets included in the National Grid Electricity System Operator’s (NGESO) Holistic Network Design Follow Up Exercise (HNDFUE), incorporated in the Beyond 2030 publication. The publication is divided into three groups which are onshore transmission (reinforcement), radial offshore transmission and non-radial offshore transmission. Additionally, the letter provides a summary of the relevant regulatory framework underpinning the decisions made.
NEWS
Ofgem has published a letter setting out its prioritisation of activities on electricity transmission network charging reforms for the remainder of 2024, and what it considers the most appropriate vehicles for these reforms.
NEWS
Ofgem has published an open letter outlining its initial approach to reforming network charging signals to align with the UK government's recent decision to retain a single, but reformed GB-wide wholesale electricity market in its 2025 Review of Electricity Market Arrangements (REMA) summer update. The letter sets out how network charges (including use of system and connection charges) could be leveraged to send effective locational signals that drive generation investment in line with future spatial energy and network plans. This would involve: (1) reducing constraint costs by incentivising generation assets to locate where there is planned network spare capacity; (2) improving investability by making network charges more predictable; (3) promoting more efficient siting of demand and storage projects; and (4) transitioning to a reformed charging regime for existing assets.
NEWS
Ofgem has published a letter on the next steps for the reformed regulatory framework on connections, including the roles and interactions between the TMO4+ code modifications, methodologies, and licences. The letter details Ofgem's and the government’s vision to align the connections process with strategic network build and spatial energy planning, and the opportunities presented by the upcoming Clean Power 2030 Plan and Strategic Spatial Energy Plan to achieve this. Ofgem has also expressed its intention to consult on potential licence changes to realise connections reform and enable the transition to clean power by 2030.