Ofgem has published an open letter, outlining its approach to prioritising and sequencing decisions on current proposals to modify sections of the Connection and Use of System Code (CUSC) related to Transmission Network Use of System (TNUoS) charges. Acknowledging the numerous interdependent CUSC modification proposals (CMPs) in this area, Ofgem will adapt its decision-making timelines and collaborate with the CUSC Panel to prioritise proposals still in the industry-led process, focusing on the degree of interaction between them. A key focus is on CMP444, which seeks to introduce a temporary cap and floor mechanism to wider generation TNUoS charges. Ofgem recognises the interactions between CMP444 and other live proposals and expects to reach a final decision on CMP444 before the Contracts for Difference Allocation Round 7 bidding window opens, aiming to reduce industry uncertainty about maximum TNUoS charges. Ofgem has reserved judgment on CMPs 315 and 375 pending the outcome of the Review of Electricity Market Arrangements (REMA).  It has also indicated that it may consider launching a Significant Code Review following the government's REMA decision expected in summer 2025.

Ofgem has published a letter to the National Energy System Operator (NESO) and Transmission Owners (TOs), detailing requirements for community engagement in infrastructure development. The letter outlines the ongoing consultation on the RIIO-3 Draft Determinations and confirms that TOs must implement the Department for Energy Security and Net Zero's (DESNZ) community funds guidance. Ofgem has also noted that it will continue engaging with stakeholders on the RIIO-3 framework to facilitate the timely delivery of infrastructure projects.

Ofgem has published a letter to the National Energy System Operator (NESO), outlining its expectations for the scope and development of the transitional Regional Energy Strategic Plan (RESP). The letter details the expected outputs, along with the proposed development approach, timeline, and governance arrangements for delivering the plan. Ofgem expects a transitional RESP plan for each RESP region, ensuring coherence across plans and alignment with national and regional energy planning priorities, among other aspects. The timeline includes Phase 1 scoping work, including pathway methodology, in Q1 2025, a public consultation on draft transitional RESP outputs in in September 2025, and final outputs due in January 2026. Ofgem will publish its decision on the RESP methodology policy framework in spring 2025. Additionally, a governance structure will be established to oversee the development of the transitional RESP product, with regular senior steering meetings to monitor progress and address issues.

Ofgem has published two letters outlining agreements for the National Energy System Operator (NESO) to provide technical support in assessing Long Duration Electricity Storage (LDES) projects under the first application window (Window One) of the cap and floor regime. NESO’s support will cover areas such as determining storage capacity levels, validating applicants’ connection status, conducting cost-benefit analyses and evaluating the wider system impacts of proposed projects, while Ofgem will maintain overall responsibility for the scheme’s design and delivery.

Ofgem has published its Sector Specific Methodology Decision (SSMD) establishing assessment rules for Britain's electricity distribution networks' investment plans covering 2028–33. The decision requires the five distribution network operators (DNOs) to adopt a ‘build and flex’ approach as default, maximising existing grid capacity through smart demand management before investing in new infrastructure. The framework introduces tighter baseline capital rules, stricter cost controls through evidence thresholds and in-period adjustments and stronger consumer protection measures including enhanced financial penalties for underperformance. The new five-year price control period commences on 1 April 2028 covering 14 licence areas of distribution networks.

Energy analysis: After decades without new large-scale long duration electricity storage (LDES) projects in Great Britain, Ofgem’s June 2026 minded-to decisions mark a pivotal moment. This News Analysis explains the rationale behind the new cap and floor regime; identifies the 16 projects Ofgem is minded-to support, which total over 7.6 GW (with a weighted average duration of over 17 hours per project) across pumped storage hydro, battery, compressed air and flow technologies; summarises the Multi-Criteria Assessment methodology Ofgem employed to reach its decisions, including the Economic, Financial, and Strategic Assessments; and considers the practical implications of the minded-to decisions for developers, funders, lawyers, and other key stakeholders. Written by Louise Dalton, partner and Ed Longden, associate in the Energy and Infrastructure team at CMS.

Ofgem has published modified versions of the RIIO-2 Regulatory Instructions and Guidance (RIGs) and Regulatory Reporting Packs (RRPs) for electricity distribution, electricity transmission, and gas transmission networks. A modified version of the Price Control Financial Model Guidance for gas transmission networks has also been published. These changes, proposed via notices issued on 21 February 2025, were made in response to stakeholder feedback, and aim to clarify reporting requirements for network licensees. The changes are effective immediately, and Ofgem has clarified that annual reporting information submitted for the 2024-25 regulatory year must comply with these updated documents.

Ofgem has published an open letter outlining the urgent need for architectural coordination in the digitalisation of the UK's energy system. Drawing on the Clean Flexibility Roadmap and the Sector Digitalisation Plan, the letter sets out five key questions that must be resolved to achieve effective coordination and ensure that digitalisation efforts are coherent and cost-effective. Notably, Ofgem highlights a significant governance gap, noting the absence of a neutral body or group capable of overseeing architectural coordination across all delivery bodies. Ofgem invites stakeholder feedback on these issues until 5 December 2025, including participation in related workshops.

Ofgem has published an open letter, responding to concerns and uncertainty over long-term Transmission Network Use of System (TNUoS) charges, particularly those driven by last year’s National Grid Electricity System Operator (NGESO) ten-year projections, which indicated significant charge increases. Ofgem outlines the impact of these projected increases on investment decisions and consumers, and encourages NGESO to raise a code modification proposal that aligns with the views expressed in the letter, to be brought to the Connection and Use of System Code Panel in October 2025.

Ofgem has published a policy update on its Offshore Transmission Owner (OFTO) build model for non-radial transmission assets. Following stakeholder feedback from its April 2024 consultation, Ofgem has decided to move away from the previously proposed late competition OFTO build model to an earlier competition model. This change is attributed to shifts in the landscape concerning the number of potential non-radial assets that could utilise the OFTO build model. Ofgem will now focus on transitioning to an earlier build model, identifying suitable pilot projects, and developing a long-term model adaptable to various future scenarios. Ofgem intends to engage with stakeholders over the coming months to further refine the model, with the aim of confirming suitable pilot projects by Q2 2025.

Ofgem has published its preliminary Strategic Direction Statement (SDS) for industry codes, following its January 2025 consultation. The SDS aims to support the coordination and prioritisation of strategic changes within industry codes and comprises an assessment of government policies and energy sector developments that may necessitate code modifications.  Published ahead of the first code manager appointments in 2026, the SDS is designed to assist prospective code managers in preparing for their roles and to support stakeholders in progressing the strategic changes required to achieve the government’s clean power target by 2030. The SDS will be issued annually. Alongside the SDS, Ofgem has published a decision summarising feedback from the January 2025 consultation and outlining proposals to support implementation of the SDS and the transition to future code governance arrangements. This includes Ofgem’s current position on introducing a new licence obligation requiring licensees to cooperate with the code modification process, where it supports SDS alignment and is reasonably requested by a code manager. Additionally, Ofgem has published its proposed legal drafting for the code modification prioritisation procedure and accompanying authority guidance.

Ofgem has published its Renewables Obligation Certificate (ROC) issue schedule for the 2026–2027 obligation year, setting out, for electricity generated between 1 April 2026 and 31 March 2027, the monthly deadlines by which generation output data must be submitted and the corresponding dates on which Ofgem intends to issue ROCs. The schedule confirms that operators who anticipate difficulties in meeting a submission deadline should notify Ofgem in advance, noting that data submitted late will be suspended and may require justification, and that ROCs are unlikely to be issued by the intended date in such cases. The schedule also confirms the arrangements for operators of micro‑generating stations with a declared net capacity of 50 kW or less who have elected to receive ROCs on an annual basis, requiring them (or their agents) to submit output and input electricity data for the full 2026–27 period by 31 May 2027, with data in most cases submitted via the Renewable Electricity Register and specific guidance available for micro‑generators in Northern Ireland.