Demand connections reform
Summary
Ofgem proposes demand connections reform structured around 'Curate, Plan and Connect' pillars to address queue viability, project progression delays, and lack of strategic prioritisation. The demand queue has grown substantially with many non-viable projects blocking viable ones from connecting. The reform builds on TMO4+ and involves NESO and network companies in developing prioritisation mechanisms for strategically important projects.
Why it matters
This represents a shift from first-come-first-served queueing toward active curation and strategic prioritisation — pricing connection rights rather than rationing them by time. Data centres and other large demand projects gain potential fast-track routes, while speculative applications face higher barriers, creating winners and losers based on project viability rather than application timing.
Key facts
- •Consultation closes 13 March 2026
- •Three-pillar reform: Curate, Plan and Connect
- •Builds on TMO4+ framework
- •Addresses queue growth with non-viable projects
- •Introduces strategic project prioritisation
Timeline
Areas affected
Related programmes
Memo
## What this is about
Ofgem is reforming demand connections to break the current dysfunction where viable projects cannot connect because non-viable ones block the queue. The demand connection queue has grown substantially and contains significant numbers of projects that will never materialise, preventing well-developed projects from progressing to connection. Meanwhile, there's no mechanism to fast-track strategically important demand projects like data centres that government sees as critical infrastructure.
The reform builds on TMO4+ and introduces a "Curate, Plan and Connect" framework developed with DESNZ, NESO and network companies. This represents a fundamental shift from first-come-first-served rationing toward active queue management that prices connection rights rather than allocating them purely by application timing. The consultation follows a demand connections update published in November 2025 that identified three core problems: queue growth with non-viable projects, delayed progression of viable projects, and lack of strategic prioritisation mechanisms.
## Options on the table
Curate: Queue Viability Mechanisms
The curation pillar focuses on removing non-viable projects from connection queues through higher barriers to entry and ongoing viability checks. Projects would face increased financial commitments, stricter milestone requirements, and regular progress assessments. This approach would eliminate speculative applications that currently clog the system but never progress to construction.
Winners include genuine developers with viable projects who gain faster queue progression and clearer visibility on connection timelines. Network companies benefit from reduced administrative burden managing phantom projects. Losers are speculative developers who rely on cheap options to hold connection rights without serious development intention. Land speculators and projects banking connection rights for later disposal face higher costs and stronger exit pressure.
Plan: Strategic Network Development
The planning pillar involves NESO and network companies developing strategic network capacity ahead of specific connection applications, particularly in areas identified as strategically important for demand growth. This anticipatory investment approach would create connection-ready capacity for priority sectors like data centres, advanced manufacturing, and electrification projects.
Data centre developers and other strategic sectors gain potential fast-track access to pre-built network capacity, reducing their development risk and timeline uncertainty. Network companies receive clearer strategic direction and potentially improved regulatory treatment for anticipatory investments. Traditional industrial and commercial customers may face longer waits if network capacity is reserved for strategic projects, while smaller developers lose relative priority in the connection process.
Connect: Enhanced Delivery and Prioritisation
The connection pillar establishes explicit prioritisation mechanisms within the queue based on strategic importance, delivery certainty, and system benefits. Projects deemed strategically important by government criteria would receive accelerated processing and preferential access to available network capacity, even if they applied later than other projects.
Strategic projects identified by DESNZ gain significant competitive advantage through faster connection timelines and reduced regulatory risk. Projects supporting net zero delivery, industrial strategy objectives, or critical infrastructure receive prioritised treatment. Standard commercial and industrial projects face potential queue position losses as strategic projects leapfrog ahead, creating a two-tier system where government priorities override pure chronological ordering.
## Questions being asked
Queue Management and Viability
Questions focus on how to identify and remove non-viable projects while protecting genuine developers. Key areas include appropriate financial commitment levels, milestone frameworks for measuring project progress, and mechanisms for projects to demonstrate ongoing viability. The consultation asks what constitutes sufficient evidence of project progression and how frequently viability should be reassessed.
Strategic Prioritisation Criteria
The consultation seeks views on which demand projects should receive strategic priority and what criteria should determine this designation. Questions cover how to balance strategic importance against fairness to existing queue positions, whether prioritisation should be sector-based or project-specific, and how to ensure transparency in strategic designation processes. Respondents are asked how government priorities should interface with commercial queue management.
Network Planning Integration
Questions address how demand connections should integrate with strategic network planning, particularly NESO's centralised network planning role. The consultation asks how network companies should plan for uncertain demand growth, what level of anticipatory investment is appropriate, and how costs should be allocated between early movers and system users. Key questions cover coordination between transmission and distribution planning for large demand connections.
Implementation Timeline and Transition
The consultation asks how quickly reforms can be implemented and what transitional arrangements are needed for existing queue positions. Questions cover whether existing applications should be grandfathered under current rules, how to manage queue position changes during transition, and what notice periods are appropriate for new requirements. The consultation seeks views on sequencing different reform elements.
Cost Recovery and Allocation
Questions address who should pay for queue management improvements, strategic network investments, and administrative costs of enhanced prioritisation processes. The consultation asks whether costs should fall on connection applicants, network users generally, or specific beneficiary groups. Key questions cover charging arrangements for strategic projects and whether they should pay standard connection charges.
## How to respond
Submit responses by 13 March 2026 by emailing connections@ofgem.gov.uk. Ofgem welcomes responses from anyone with interest in demand connections, explicitly including customers connecting to networks, data centre developers, and network companies. The consultation period runs for one month following publication on 13 February 2026.
Source text
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The demand connections process is currently facing three interrelated challenges, which are: * the demand queue is large and growing and contains a significant number of projects that are likely non-viable * the demand queue contains a significant number of well-progressed projects that cannot progress to connection quickly enough, due to the time required for network or generation build, and the presence of non-viable projects * there are no mechanisms to prioritise strategically important demand projects We therefore need a demand queue composed of viable projects which can progress to connection in a timely manner within the constraints of the energy system, which allows strategically important demand projects to be prioritised for connection if necessary. Working with government, NESO and network companies, we are building on TMO4+ to develop a package of reforms to the demand connections process, structured around three core pillars: Curate, Plan and Connect. We are seeking views from interested parties on the options we are currently considering, as well as any additional approaches we should consider, to reform demand connections. ## Who should respond We welcome responses from anyone with an interest in the demand connections process, including: * customers connecting to the network * data centre developers * network companies ## How to respond Submit your response by 13 March 2026 by emailing connections@ofgem.gov.uk. ## Call for input documents [Call for input: demand connections reform [PDF, 267.80KB]](/sites/default/files/2026-02/2026-02-12-Demand-Connections-Call-for-Input.pdf) Get emails about this page [Print this page](/call-for-input/demand-connections-reform) ## Related links [Demand connections update](/guidance/demand-connections-update) ### Share the page * [Share on Facebook](http://www.facebook.com/share.php?u=https://www.ofgem.gov.uk/call-for-input/demand-connections-reform) * [Share on Twitter](https://twitter.com/intent/tweet?text=Demand%20connections%20reform&url=https://www.ofgem.gov.uk/call-for-input/demand-connections-reform) * [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://www.ofgem.gov.uk/call-for-input/demand-connections-reform) Close Notify me Would you like to be kept up to date with *Demand connections reform*? subscribe to notifications: Email [](/ "Home") ### Subscribe to receive our latest news and communications [Subscribe now](https://email.ofgem.gov.uk/p/1QCB-1GX5/subscribe) ## Contact us * [Contact us](/about-us/get-in-touch/contact-us) * [Publications](/publications) * [Schemes register](/log-your-scheme-register) * [Electronic public register](https://epr.ofgem.gov.uk/) ## Other * [Cookies](/cookies) * [Ofgem privacy policy](/ofgem-privacy-policy) * [Website accessibility](/website-accessibility) * [© Ofgem 2026](/c-ofgem-2026) Follow us * [X](https://x.com/ofgem) * [LinkedIn](https://www.linkedin.com/company/ofgem) * [Facebook](https://www.facebook.com/ofgem) Close