Ofgem has published an update and a summary of responses to its December 2023 call for input on proposed changes to the Transmission Constraint Licence Condition (TCLC), a provision designed to prevent licensees from obtaining excessive benefits from bids submitted in the Balancing Mechanism (BM) during transmission constraint periods. The call for input examined five potential changes, including: (1) expanding the TCLC to cover balancing services used by the electricity system operator to manage constraints other than the BM; (2) extending its scope to include offers; (3) expanding its application to import bids and export offers; (4) replacing its requirements with a cap on generators’ prices or profits during constraint periods; and (5) extending its requirements to providers of balancing services beyond licensed electricity generators. The majority of stakeholders did not support these proposals. As a result, Ofgem confirmed that it will not proceed with formal consultations on the suggested changes but will instead monitor market developments and behaviours in these areas.

Ofgem has published an updated version of its Interconnector Cap and Floor Regime Handbook, first published in 2021. The revised Handbook incorporates recent regime policy changes, includes information on the Window 3 application window, and reflects general updates to Ofgem’s assessment framework. The Handbook outlines Ofgem's cap and floor regime for electricity interconnectors and comprises details on certification, access rules, and charging methodologies applicable to electricity interconnectors.

Ofgem has published the updated versions of the RIIO-2 Regulatory Instructions and Guidance (RIGs), Regulatory Reporting Packs (RRPs), and Price Control Financial Model (PCFM) guidance for gas distribution networks. These changes, initially proposed by Ofgem via a notice on 21 February 2025, were made following 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 updated version of the RIIO-2 Network Innovation Allowance (NIA) governance document, setting out the arrangements for the governance and administration of the RIIO-2 NIA framework. The revised document applies to electricity distribution licensees for the remainder of the RIIO-ED2 price control period, ending 31 March 2026. It also clarifies that gas transporter and electricity transmission licensees' and the National Energy System Operator (NESO)'s projects funded under RIIO-2 NIA can continue in the RIIO-3 price control period under the Carry-over NIA, which will cease to be effective on 30 September 2027. Projects funded under RIIO-3 NIA allowances will be subject to the RIIO-3 NIA governance document.

Ofgem has published updated guidance setting out how it intends to select and license code managers under new powers introduced by the Energy Act 2023 (EnA 2023). Under these powers, Ofgem will assume responsibility for selecting and licensing code manager entities, which will take over functions currently performed by code panels and code administrators, including making recommendations on code modifications. They will also assume new responsibilities, notably ensuring that codes evolve in line with Ofgem’s annual Strategic Direction Statement.

Ofgem has published its updated guidance on gas and electricity licence applications, following its April 2025 consultation. The updated guidance is intended for individuals seeking to: (1) apply for a new gas or electricity licence from Ofgem; (2) obtain consent to transfer an existing licence; or (3) extend, restrict or modify an existing licence. The updated guidance takes immediate effect and applies to both existing and new applications.

Ofgem has published version 2.0 of the Green Gas Support Scheme (GGSS) guidance to reflect the amended GGSS Regulation which came in to force on 4 June 2024. The amendments also enable the registration of heat pumps so that heat supplied to the anaerobic digesters and biomethane production process from a registered eligible heat pump is exempt from heat deduction in the calculation of payments. The amendments to the GGSS regulations allow applications to be made until 31 March 2028.

Ofgem has published version 2.1 of its Green Gas Support Scheme (GGSS), making minor amendments to improve clarity. The document also clarifies Ofgem’s role in relation to environmental legislation, noting that while it administers the GGSS, it does not have the powers of an environmental agency.

Ofgem has published version 2.2 of its Green Gas Support Scheme (GGSS) guidance to reflect recent regulatory amendments. The scheme supports the deployment of new anaerobic digestion biomethane plants that inject green gas into the grid. Updates clarify application procedures, tariff guarantees, and compliance duties.

Ofgem has published version 3.1 of its Strategic Innovation Fund (SIF) governance document, following consultations held in February and March 2025. The updated version includes clearer definitions of the terms ‘Cycle’ and ‘Stage Gate’ and reflects updated organisational references to the National Energy System Operator (NESO) and the Department for Energy Security and Net Zero (DESNZ). While Ofgem has acknowledged stakeholder feedback requesting additional dissemination portals, no immediate changes have been implemented. These considerations will be addressed as part of the upcoming RIIO-3 improvements.

The Office of Gas and Electricity Markets (Ofgem) has rejected the Connection and Use of System Code (CUSC) Modification Proposal CMP432, which sought to remove the Locational Onshore Security Factor (LSF) from the calculation of Wider Transmission Network Use of System tariffs. The proposal, raised by Scottish and Southern Energy, aimed to improve cost reflectivity and competition by eliminating what was perceived as an unnecessary amplification of charges arising from the inclusion of network redundancy costs.

Ofgem has rejected the National Energy System Operator (NESO)’s request to competitively tender a sub-component of project WCN2, concluding that it does not qualify for onshore competition under section 6(3) of the Electricity (Early-Model Competitive Tenders for Onshore Transmission Licences) Regulations 2025, SI 2025/446. The project did not meet all qualifying criteria, specifically the network needs case requirement. Ofgem was unable to confirm the needs case for WCN2 due to uncertainty over the impact of connections reform, the Strategic Spatial Energy Plan and the Clean Power Plan 2030 on future network requirements. It was also unable to do so ahead of the transitional Centralised Strategic Network Plan 2 Refresh (tCSNP2 Refresh), expected from NESO in 2026, citing the risk that WCN2 may not be required or that an alternative option could better meet network needs.