Ofgem has published an update document in connection with the TMO4+ grid connection reforms, responding to a sharp rise in demand connection applications at both transmission and distribution level since November 2024, The rise in demand applications risks delaying viable, strategically important demand projects from connecting to the grid in a timely way. Working with government, the National Energy System Operator (NESO) and network companies, Ofgem has outlined regulatory options to curate a more viable demand queue, enable faster connections and prioritise strategic demand projects.

Ofgem has published a letter setting out its policy positions on the need for common digital infrastructure across the National Energy System Operator (NESO) and Distribution System Operator (DSO) flexibility markets. The letter addresses support for small-scale flexible asset participation in flexibility markets, considering where common digital infrastructure may be required across flexibility market processes. Ofgem previously decided that Flexibility Market Asset Registration should be delivered as common digital infrastructure by Elexon, acting as the Market Facilitator. It is now considering whether other steps in the flexibility market process should also be supported by common digital infrastructure. The open letter provides Ofgem's current policy position for each step of the process and outlines its forward monitoring approach. Stakeholders are invited to submit informal feedback on the policy positions by 2 December 2025.

Ofgem has closed its investigation into OVO Energy, finding that the supplier breached rules designed to protect vulnerable prepayment meter (PPM) customers by failing to adequately monitor customer welfare, maintain accurate records, consistently apply Priority Services Register (PSR) protections, and properly support customers who self-disconnected from their energy supply. Ofgem concluded that these process failures exposed vulnerable customers to a risk of harm. In response, OVO has agreed to a settlement package comprising a £7 million payment to Ofgem’s Voluntary Redress Fund and £3.4 million in credit and debt relief for vulnerable customers, while affected customers will be contacted directly. Separately, OVO is paying £1.1 million to customers in the Scottish Highlands and Islands following a compliance review that found some rural customers lacked adequate access to engineer support between January 2022 and April 2024. During the investigation, OVO implemented remedial measures, including welfare visits for customers disconnected for more than 72 hours, and Ofgem stated that the case forms part of its wider programme to strengthen consumer protections and raise standards across the energy sector.

Ofgem has published a decision in response to its September 2024 call for input on proposals to review the energy networks ring-fence licence conditions. The decision outlines Ofgem’s plans to conduct a detailed review and adopt a targeted approach to strengthen existing ring-fence licence conditions. Ofgem intends to launch a policy consultation in late summer 2025, followed by a statutory consultation to modify the licence conditions. The review will apply to all RIIO network companies, including Electricity Distribution Network Operators.

Ofgem has announced that it is redeveloping the Renewables and Combined Heat and Power (CHP) Register, currently used to administer the Renewables Obligation, Feed-in Tariff (specifically ROOFIT) and Renewable Energy Guarantees of Origin schemes. Ofgem aims to provide a new register that is easier to use, offers a better user experience and is fit for purpose. The new system will be called the Renewable Electricity Register and is planned to launch during Q1 2023–2024.

Ofgem has updated its Advanced Procurement Mechanism (APM) Governance Document to version 1.3 as part of the RIIO-ET3 electricity transmission price control guidance. Electricity transmission licensees are required by Special Condition 3.16 to comply with the document. The APM advances funding to help transmission licensees reserve supply chain capacity for equipment and related services where constraints could delay network projects. The document sets out eligible APM expenditure, including qualifying cost categories, flexible procurement through fungible assets or contracts with optionality and Authority-approved bespoke procurement. Ofgem applies three eligibility criteria when setting or amending APM Cost Categories, Bespoke Procurement allowances and the APM Cap—requirement for APM funding, mitigation of stranded procurement risk and transparency. It also provides reopener arrangements for APM Cost Categories, Bespoke Procurement allowances and the APM Cap, together with reporting and tracking requirements for licensees. The document takes effect from 2 October 2026.

Ofgem has published version 2.00 of the carbon dioxide transport and storage (CO2 T&S) price control financial model (PCFM), price control financial handbook and price control financial guidance. Ofgem must publish up-to-date copies of the price control financial instruments on its website. Changes to calculations within the PCFM constitute a modification under special condition J13 of the CO2 T&S licence.

Ofgem has published updated guidance for Feed-in Tariff (FIT) generators and licensed electricity suppliers. The guidance for MCS-FIT and ROO-FIT accredited installations outlines the FIT scheme guidelines and explains the steps generators should take when modifying an accredited FIT installation. It has been updated to improve readability and accessibility, with outdated information removed following the closure of the FIT scheme. The update also includes additions to sections on generator ownership checks, co-locating installations with batteries and electric vehicle charging points, and the interactions between the FIT and Smart Export Guarantee schemes. The guidance for licensed electricity suppliers summarises their duties under the FIT scheme, and has been updated to incorporate changes regarding the use of photographic evidence in biennial meter variations. It also includes recommendations for battery installations, and the methodology for calculating FIT payments over the Retail Price Index uplift period

Ofgem has updated its lines of enquiry for its review of electricity system operations during the extreme heat in June 2026 after reviewing a preliminary report from the National Energy System Operator (NESO). The review will examine system security, operational planning and decision-making, interconnector flows, demand forecasting, generation availability, balancing services and the wider market’s response. Ofgem has not yet drawn conclusions. It aims to publish its conclusions by 31 January 2027 on whether Great Britain’s electricity system remained secure during these events and whether security standards were maintained. It will publish lessons learned and a timebound action plan by 31 March 2027 to improve the sector’s preparedness for future periods of extreme heat. Ofgem will consider opening enforcement investigations where there is material reason to believe a licensee has breached its obligations. Separately, NESO has published the findings of an independent Eversheds Sutherland investigation into whistleblowing allegations concerning operational decision-making and record-keeping during the same period. The report raises issues about NESO’s working culture and practices, which its board will consider before setting out an action plan. Relevant evidence from the investigation will inform Ofgem’s review.

Ofgem has published a decision to use its powers of direction in relation to the Electricity System Operator's (ESO) annual review of all statements set out under Standard Licence Condition (SLC) C16 of its Electricity Transmission Licence. Under C16(9)(iv) of SLC C16, Ofgem is directing the ESO to remove the following sentence from the proposed revisions to the Procurement Guidelines Statement: '[National Grid Electricity System Operator Limited] expects to use [Demand Flexibility Service] from 30 October 2023 to 31 March 2024 with a potential extension beyond that if required.' The updated documents are expected to be published and entered into force from 1 April 2024.

Ofgem has published a decision to use its power of direction regarding the National Energy System Operator (NESO)’s ad hoc review and propose changes to the C9 statements, following the NESO’s submission in September 2024 in accordance with Condition C9 of its Electricity System Operator (ESO) licence. Under C9.24(b) of the NESO’s ESO licence, Ofgem is directing the NESO to remove the entire text of revision 2.05 of the Applicable Balancing Services Volume Methodology Statement: ‘This is subject to a potential change proposal under P412 which could move from delivered volume to expected volume’, along with any associated double asterisk markings. The proposed changes are scheduled to come into force on 4 October 2024.

Ofgem has announced that it will not proceed with the proposed addition of temporary facilitative licence conditions to the standard licence conditions and the Smart Meter Communication Licence, following stakeholder feedback from its April 2024 consultation. The proposed modifications were intended to support the transition to the Independent System Operator and Planner (ISOP), also known as the National Energy System Operator, by requiring licensees to cooperate with and facilitate the transition.