Consultation on the draft second preliminary Strategic Direction Statement for industry codes
This consultation is open for responses
Closes 28 May 2026 (53 days remaining)
Summary
Ofgem publishes its second preliminary Strategic Direction Statement for industry codes, setting out priority policy areas requiring code changes. Follows the first SDS from August 2025.
Why it matters
The SDS is Ofgem's steering mechanism for code reform — it tells code managers what direction to take. This is regulator-directed reform replacing the existing proposer-led modification process.
Questions being asked
Strategic direction
- Is the categorisation of policy areas appropriate?
- Are any key areas missing?
Key facts
- •Consultation closes 28 May 2026
- •Second preliminary SDS
- •BSC and REC designation expected by end 2026
Timeline
Areas affected
Related programmes
Memo
## Strategic Direction Statement: Ofgem's code reform roadmap
What this is
Ofgem's second preliminary SDS for industry codes — the document telling code managers what policy areas to prioritise. Follows the first SDS from August 2025.
Why it matters
The SDS is Ofgem's primary tool for directing code reform. Instead of waiting for industry proposals, Ofgem categorises policy areas and signals urgency. The SDS effectively becomes the queue for code reform.
What to look for
1. Is the categorisation of policy areas right? 2. Are any areas missing? 3. Is the preliminary-to-hybrid conversion plan sound?
The categorisation determines which changes get resources. The hybrid conversion happens when Ofgem's powers become binding — expected with BSC/REC designation by end 2026.
How to respond
By 28 May 2026 to industrycodes@ofgem.gov.uk.
Source text
Consultation on the draft second preliminary Strategic Direction Statement for industry codes | 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: Consultation on the draft second preliminary Strategic Direction Statement for industry codes Publication type: Consultation Publication date: 2 April 2026 Closing date: 28 May 2026 Topic: Energy codes Get emails about this page Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn We are seeking feedback on the second preliminary Strategic Direction Statement (SDS) for industry codes. Consultation description The transitional powers provided by the Energy Act 2023 gives Ofgem new functions to set the direction for the development of designated electricity and gas industry codes. As part of the transition to a new code governance framework, Ofgem published the first preliminary Strategic Direction Statement in August 2025. We are now consulting on the proposed content of the second preliminary SDS, including our categorisation of policy areas and whether any key areas which may or will require code changes are missing from our assessment. We are also seeking views on our proposed approach for converting the second preliminary SDS from a preliminary to hybrid document, once the expected designation of the Balancing and Settlement Code and the Retail Energy Code occurs by the end of 2026. Who should respond We want to hear views and feedback from anyone who has an interest in, or works on, the energy codes. This includes: code administrators code parties central system delivery bodies consumer groups How to respond Submit your response by 28 May 2026 by emailing industrycodes@ofgem.gov.uk . A response form is provided with the consultation. Consultation documents Consultation on the draft second preliminary Strategic Direction Statement [PDF, 233.60KB] Subsidiary document 1: draft second preliminary Strategic Direction Statement [PDF, 0.98MB] Subsidiary document 2: Draft second preliminary Strategic Direction Statement spreadsheet [XLSX, 622.43KB] Consultation on the draft second preliminary Strategic Direction Statement: response template [DOCX, 125.93KB] 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 Consultation on the draft second preliminary Strategic Direction Statement for industry codes ? subscribe to notifications: Email Submit Close