Code Manager Licence Conditions and Code Modification Appeals to the CMA
This consultation is open for responses
Respond to this consultationSummary
DESNZ and Ofgem propose licence conditions for code managers and an appeals process to the Competition and Markets Authority for code modification decisions. The consultation follows 2024 regulations that enable Ofgem to select code managers. Appeals would allow industry parties to challenge Ofgem's decisions on code modifications through the CMA.
Why it matters
This creates an escape valve for industry disputes over code changes but adds another layer of process rather than fixing the incentive structure that generates conflicts. Code managers will face standard licence obligations while parties get CMA appeals, preserving regulatory discretion while appearing to enhance scrutiny.
Key facts
- •Code Manager Selection Regulations 2024 already laid
- •Full set of standard licence conditions proposed
- •CMA appeals process for code modification decisions
Areas affected
Related programmes
Memo
In this joint DESNZ/Ofgem consultation, we set out our proposals for code manager standard licence conditions and code modification appeals to the Competition and Markets Authority (CMA). This follows our first joint consultation in 2024, which consulted on a selection of code manager licence conditions, as well as proposals for the secondary legislation underpinning Ofgem’s code manager selection process. Since consulting, we have laid the Code Manager Selection Regulations 2024, which will enable Ofgem to select code managers and so begin implementing code governance reforms. We are now developing a full set of code manager licence conditions and proposals for the code modifications appeals process to the CMA. The consultation covers: Code manager licence conditions We set out the full set of standard licence conditions, including some follow-up on proposals form the original consultation. Code modification appeals to the CMA We set out proposals for how eligible parties may challenge Ofgem decisions on code modifications. Our aim is to ensure that industry has appropriate routes to challenge decisions and achieve a fair outcome. Read the [consultation document and Code Manager Standard Licence Conditions](https://www.gov.uk/government/consultations/energy-code-reform-code-manager-licence-conditions-and-code-modification-appeals-to-the-cma) on GOV.UK.