Growing Great Britain’s electricity network supply chains: Ofgem position and call for evidence
This consultation is open for responses
Closes 10 May 2026 (35 days remaining)
Summary
Ofgem proposes standardised reporting requirements for network companies to disclose procurement practices, local content, and supplier details for electricity network equipment and services. The consultation closes 10 May 2026 and explores potential adjustments to encourage greater domestic supply chain participation within existing regulatory frameworks. This follows Great Britain's planned network expansion requiring unprecedented equipment procurement.
Why it matters
This creates information without changing procurement incentives — network companies still optimise for cost and delivery under existing price controls. The reporting requirements may favour domestic suppliers by making foreign sourcing more visible, but without price signals or procurement mandates, market forces remain unchanged.
Options on the table
Standardised procurement reporting
Network companies would report procurement practices, supplier details, local content percentages, and decision-making factors through standardised templates. This would create visibility into supply chain choices without mandating specific procurement outcomes or changing existing cost recovery mechanisms.
Enhanced domestic content incentives
Potential adjustments to regulatory framework to encourage greater domestic supply chain participation, though specific mechanisms are not detailed. This could involve procurement guidance, reporting requirements that highlight domestic versus foreign sourcing, or other measures within existing price control structures.
Questions being asked
Procurement practices and decision factors
- What factors influence procurement decisions for network equipment and services?
- What adjustments may be beneficial to encourage greater representation of local content in the supply chain?
Reporting requirements
- What are your views on introducing proportionate, standardised reporting on procurement?
- What should be included in potential reporting requirements?
Supply chain development
- How can domestic manufacturing capability be supported through regulatory mechanisms?
- What role does demand visibility play in supply chain investment decisions?
Key facts
- •Consultation closes 10 May 2026
- •Reporting would cover procurement of network equipment and services
- •Seeks to identify factors influencing procurement decisions
- •Operates within existing regulatory framework without changing price control incentives
Timeline
Areas affected
Related programmes
Memo
## What this is about
Ofgem is consulting on standardised reporting requirements for electricity network companies covering their procurement practices for network equipment and services. Network companies would report supplier details, local content percentages, procurement decision factors, and supply chain practices through standardised templates. The consultation runs until 10 May 2026.
This follows GB's unprecedented network expansion programme requiring massive equipment procurement. Ofgem wants visibility into procurement decisions without changing existing regulatory incentives that prioritise cost and delivery efficiency. The move responds to political pressure for network investment to deliver domestic jobs and economic growth, particularly in industrial areas, while maintaining the current price control framework that allows efficient cost recovery.
Options on the table
Standardised procurement reporting
Network companies would submit regular reports detailing procurement practices, supplier information, local content percentages, and factors driving equipment purchasing decisions. This would use standardised templates across all network operators to enable comparison and trend analysis. The reporting covers both equipment procurement (transformers, cables, switchgear) and services (construction, maintenance, consultancy).
Network companies bear additional administrative costs for data collection and reporting, passed through to consumers in future price controls. Domestic suppliers gain visibility and potentially easier access to procurement teams through published supply chain information. Foreign suppliers face no direct penalty but increased transparency around their market share. Government gains data to support industrial policy decisions without changing procurement incentives.
Enhanced domestic content incentives
Ofgem suggests potential regulatory adjustments to encourage greater domestic supply chain participation, though specific mechanisms remain undefined. This could involve procurement guidance emphasising domestic sourcing benefits, reporting requirements that highlight import dependency, or framework changes that make domestic content a consideration alongside cost and delivery.
The consultation text provides limited detail on this option, suggesting Ofgem wants industry input before developing concrete proposals. Any measures would need to operate within existing EU subsidy control rules and WTO procurement agreements. Network companies would face additional complexity in procurement decisions while domestic manufacturers could gain competitive advantages through regulatory preference rather than market efficiency.
Questions being asked
Procurement practices and decision factors
- What factors influence procurement decisions for network equipment and services? (Understanding current decision-making processes) - How do network companies currently assess and select suppliers? - What role do cost, delivery timescales, quality, and reliability play in procurement decisions? - What adjustments may be beneficial to encourage greater representation of local content in the supply chain? (Seeking specific regulatory mechanisms)
Reporting requirements design
- What are your views on introducing proportionate, standardised reporting on procurement? (Testing industry acceptance of reporting burden) - What should be included in potential reporting requirements? (Defining scope and granularity of data collection) - How frequently should reporting occur and in what format? - What level of detail would be appropriate for different categories of equipment and services?
Supply chain development and capability
- How can domestic manufacturing capability be supported through regulatory mechanisms? (Exploring intervention options within regulatory constraints) - What barriers prevent greater domestic supply chain participation? - What role does demand visibility play in supply chain investment decisions? (Understanding whether forward procurement information drives investment) - How important is long-term demand certainty for manufacturing investment decisions?
Industrial policy alignment
- What adjustments to the regulatory framework would support domestic supply chains without compromising network delivery? - How can Ofgem balance efficiency requirements with domestic content objectives? - What lessons can be learned from other countries' approaches to network supply chain development?
How to respond
Submit responses by 10 May 2026 by emailing transmission.acceleration@ofgem.gov.uk.
Respondents can answer all or selected questions. Ofgem particularly welcomes input from energy industry participants, regulated network entities, and supply chain providers.
Non-confidential responses will be published on Ofgem's website. The consultation document is available as a PDF (232.72KB) through the Ofgem website.
Source text
Growing Great Britain’s electricity network supply chains: Ofgem position and call for evidence | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Growing Great Britain’s electricity network supply chains: Ofgem position and call for evidence Publication type: Call for input Publication date: 25 March 2026 Closing date: 10 May 2026 Status: Open Topic: Electricity supply, Security of supply Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We are seeking views on introducing proportionate, standardised reporting on the procurement of electricity network equipment and services. Call for input description Great Britain is entering a once in a century period of electricity network expansion. We are clear that the scale of investment into Great Britain’s electricity networks must deliver jobs and opportunities within Great Britain’s industrial heartlands, and economic growth across the country. The regulated networks’ growing demand for equipment is a key enabler of supply chain growth. Ofgem’s approach to network regulation incentivises network companies to deliver efficiently and on time, while improving supply chain resilience and strengthening manufacturer confidence. This call for input states Ofgem’s position and seeks stakeholder input on possible next steps, including potential reporting requirements. It explores the role of domestic manufacturing capability, demand visibility, and procurement practices within the existing regulatory framework. We also welcome wider views on what factors influence procurement decisions and what adjustments may be beneficial to encourage greater representation of local content in the supply chain. Who should respond We particularly welcome input from members of the wider energy industry, regulated entities and supply chain providers. How to respond Please respond to each question as fully as you can. Respondents are welcome to answer all or some of the questions. We will publish non-confidential responses on our website. Submit your response by 10 May 2026 by emailing transmission.acceleration@ofgem.gov.uk . Call for input documents Growing Great Britain’s electricity network supply chains: Ofgem position and call for evidence [PDF, 232.72KB] Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close Notify me Would you like to be kept up to date with Growing Great Britain’s electricity network supply chains: Ofgem position and call for evidence ? subscribe to notifications: Email Submit Close