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CUSC Headline Report 24 April 2026

NESO·report·MEDIUM·8 May 2026·source document

Summary

The CUSC Panel on 24 April 2026 progressed three new modifications and one workgroup report. CMP469 creates a one-year cost recovery mechanism for parties affected by Grid Code restoration obligations (GC0186). CMP472 allows NESO to share large embedded generators' red line boundaries with DNOs without customer consent, enabling Gate 2 distribution contract verification. CMP471, which proposed interim contract variations ahead of the first CMP434 gated application window, was sent back to the proposer for scope clarification.

Why it matters

CMP417 is the most consequential item here: extending User Commitment Methodology to all users removes the Final Sums anomaly where security deposits do not reflect actual transmission liabilities, reducing barriers to entry for new connectees. CMP472 is a necessary plumbing fix for Gate 2 but raises the question of why DNOs lacked this data-sharing route in the first place. Several awaiting-decision modifications (CMP315/375, CMP316, CMP344) have slipped again, with TNUoS pricing reform now indefinitely deferred pending National Pricing Reform.

Key facts

  • CMP469 consultation open 27 Apr to 19 May 2026, standard governance
  • CMP471 sent back to proposer for scope clarification, special panel meeting to follow
  • CMP472 consultation open 27 Apr to 19 May 2026, allows NESO to share large embedded generator red line boundaries with DNOs for Gate 2
  • CMP417 proceeds to consultation 28 Apr to 20 May 2026, extends User Commitment Methodology to Final Sums users
  • CMP315/375 TNUoS expansion constant decision now TBC pending National Pricing Reform, originally due Feb 2025
  • CMP316 co-located generation decision slipped to May 2026 from March 2026
  • CMP344 revenue recovery clarification decision slipped to May 2026 from March 2026
  • CMP453 BSUoS net billing decision expected September 2026
  • Next prioritisation stack in-depth review scheduled July 2026

Areas affected

grid connectionstransmissionnetwork chargesgeneratorsdistribution

Related programmes

Connections ReformTNUoSCAR Review

Memo

What this is about

The CUSC Panel met on 24 April 2026 and moved four items forward: three new modification proposals and one workgroup report. The most consequential is CMP417, which extends the User Commitment Methodology to all users, eliminating the Final Sums anomaly that has long meant security deposits bear no relation to the transmission liabilities a connectee actually imposes. Two of the new modifications, CMP469 and CMP472, are plumbing for other reforms already in train. The third, CMP471, was sent back for scope clarification before it can proceed.

The awaiting-decision table is the other story here. Several TNUoS pricing modifications (CMP315/375, CMP316, CMP344) have slipped again. CMP315/375, the expansion constant review, is now indefinitely deferred pending "National Pricing Reform", a phrase that has replaced a specific date. CMP316 on co-located generation charging and CMP344 on revenue recovery treatment have both moved from March 2026 to May 2026. The pattern is familiar: transmission charging reform keeps getting pushed behind a larger review that has no published timeline.

Key points

CMP417: User Commitment Methodology for all users. This is the item that changes the cost stack. Under the current regime, users on Final Sums methodology post security that does not reflect their actual transmission liabilities if they cancel or reduce capacity. Users on the User Commitment Methodology post security that does. The result is a two-tier system where Final Sums users face lower upfront costs but impose the same system costs, with the difference socialised across other users. CMP417 eliminates this by putting everyone on the User Commitment Methodology. Security deposits will reflect the transmission liabilities each user actually imposes. This reduces barriers to entry for new connectees, who currently cross-subsidise legacy Final Sums arrangements. The workgroup report was accepted; CMP417 is now in Code Administrator Consultation, closing 20 May 2026.

CMP469: Cost recovery for GC0186 restoration obligations. Grid Code modification GC0186 imposes new restoration service obligations on CUSC parties who are not contracted with NESO as Restoration Service Providers. CMP469 creates a one-year cost recovery mechanism so that affected parties are not commercially disadvantaged during the transition. This is standard consequential housekeeping: one code change triggers costs, a companion modification in the adjacent code provides the recovery route. The Panel sent it to Code Administrator Consultation by majority, closing 19 May 2026.

CMP472: Sharing large embedded generator red line boundaries with DNOs. NESO currently holds the Original Red Line Boundary data submitted by Large Embedded Generators but cannot share it with DNOs without customer consent. This creates a verification gap in Gate 2: DNOs cannot independently confirm whether a large embedded generator's distribution contract is valid without this data. CMP472 adds a clause to CUSC Section 17 permitting NESO to share this data without explicit consent. The Panel agreed unanimously; Code Administrator Consultation closes 19 May 2026. The modification is necessary plumbing for Gate 2, but the fact that this data-sharing route did not already exist illustrates how fragmented the information architecture between NESO and DNOs remains.

CMP471: Interim contract variations ahead of CMP434 gated window. This proposed a temporary mechanism for users to adjust contract elements before the first CMP434 Gated Application Window opens. The Panel found the scope and defect statement unclear and sent it back to the proposer. It will return at a Special CUSC Panel meeting once the scope is tightened.

Awaiting-decision modifications: continued slippage. CMP315/375 (expansion constant and expansion factor review) no longer has an expected decision date; it is now "TBC pending update on National Pricing Reform." CMP316 (co-located generation TNUoS charging), CMP344 (revenue recovery and charging methodology), and CMP397 (consequential changes for CMP316) have all moved to May 2026 from March 2026. CMP423 (generation-weighted reference node) remains TBC. CMP453 (net BSUoS billing at BSC Trading Units) has a September 2026 target. The prioritisation stack was discussed with no changes; the next in-depth review is scheduled for the July 2026 Panel.

What happens next

Three Code Administrator Consultations are now open concurrently:

- CMP417 (User Commitment Methodology extension): closes 20 May 2026 - CMP469 (GC0186 cost recovery): closes 19 May 2026 - CMP472 (red line boundary sharing): closes 19 May 2026

CMP471 returns to a Special CUSC Panel once the proposer clarifies scope. The next Modification Tracker publishes 7 May 2026. The Transmission Charging Methodologies Forum met on 30 April 2026, which may have provided an update on the National Pricing Reform timeline that currently blocks CMP315/375. The next full CUSC Panel meets in May, with the quarterly prioritisation deep-dive scheduled for July 2026.

The practical question for anyone connected or connecting to the transmission system: respond to the CMP417 consultation by 20 May. If it proceeds, security requirements for Final Sums users will increase to reflect actual liabilities. That is a direct cost change for affected parties and a levelling of the playing field for everyone else.

Source text

Public 1 The Headline Report is produced after every Panel and aims to provide an overview of the key decisions made. Minutes for this meeting will be published separately. Approval of Panel Minutes The meeting minutes from the Panel on 27 March 2026 were approved and these have been uploaded to our website. New Modifications The following new Modification Proposals were presented to the Panel: CMP469: GC0186 Cost Recovery mechanism for CUSC Parties The GC0186 modification proposes new obligations within the Grid Code, upon Connection and Use of System Code (CUSC) Parties who are not contracted with the National Energy System Operator (NESO) as Restoration Service Providers. A one-year cost recovery mechanism is proposed here to prevent the parties affected by implementation of the GC0186 modification being commercially disadvantaged. The Panel by majority agreed that CMP469 should follow the Standard Governance route and proceed to Code Administrator Consultation. The Code Administrator Consultation opened on 27 April, and this will close on 19 May 2026. CMP469 documentation can be found here. CMP471: Interim Contract Variation Process Ahead of CMP434 Gated Application Window This modification proposes a temporary, limited amendment to the CUSC allowing Users to adjust elements of their NESO contracts before the first CMP434 Gated Application Window. CUSC Panel Headline Report 24 April 2026 Public 2 The Panel did not agree that the scope and defect of the modification was clear. The Panel redirected the modification back to the Proposer to review and amend the scope and re-submit for discussion at a Special CUSC Panel meeting. CMP471 documentation can be found here. CMP472: Large Embedded Generators Original Red Line Boundary Sharing Without Customer Consent This proposal seeks to introduce a new clause in Section 17 of the CUSC to permit NESO to share the Original Red Line Boundary (ORLB) submitted by Large Embedded Generators (LEGs) with the relevant DNOs without requiring explicit customer consent. This change enables DNOs to independently and consistently verify distribution contract validity for LEGs applying for Gate 2 offers, ensuring that only projects with compliant and valid distribution arrangements progress through the gated connections process. The Panel unanimously agreed that CMP472 should follow the Standard Governance route and proceed to Code Administrator Consultation. The Code Administrator Consultation opened on 27 April, and this will close on 19 May 2026. CMP472 documentation can be found here. New / Pending Authority Decisions Decisions since the last Panel There have been no new Authority decisions on CUSC Modifications. Awaiting Decisions Modification Final Modification Report Received Expected Decision Date CMP315 ’TNUoS Review of the expansion constant and the elements of the transmission system charged for’ and CMP375 07 February 2024 TBC pending update on National Pricing Reform (previously 07 February 2025) Public 3 ‘Enduring Expansion Constant & Expansion Factor Review’ CMP316 ‘TNUoS Charging Methodology for Co-located Generation’ 08 August 2025 May 2026 (previously March 2026) CMP330&CMP374 ‘Allowing new Transmission Connected parties to build Connection Assets greater than 2km in length and Extending contestability for Transmission Connections’ 10 August 2023 TBC subject to CMP414 send back CMP344 ‘Clarification of Transmission Licensee revenue recovery and the treatment of revenue adjustments in the Charging Methodology’ 09 July 2025 May 2026 (previously March 2026) CMP397 ‘Consequential changes required to CUSC Exhibits B and D to reflect CMP316 (Co- Located Generation Sites)’ 12 June 2024 May 2026 (previously March 2026) CMP423 ‘Generation-weighted Reference Node’ 09 December 2025 TBC CMP453 ‘To Bill BSUoS on a net basis at BSC Trading Units’ 11 November 2025 September 2026 Ofgem publish a table that provides the expected decision date, or date they intend to publish an impact assessment or consultation, for code modifications/proposals that are with them for decision. This is published here. Public 4 Prioritisation Stack The Panel discussed the prioritisation stack and made no changes. Every quarter the CUSC Panel hold a more in-depth review, the next in-depth review is scheduled for the July 2026 Panel. The latest prioritisation stack can be found here. In flight Modifications The next Modification Tracker will be published on 07 May 2026. Workgroup Reports The following Workgroup Report was presented to the Panel: CMP417: Extending principles of CUSC Section 15 to all Users This modification seeks to extend the principles of CUSC Section 15 “User Commitment Methodology” to Users on Final Sums methodology, resulting in all Users being on the User Commitment Methodology. This will introduce equitable treatment across User groups and reduce barriers to entry as a User’s security amount will better reflect the transmission liabilities they impose should they cancel connection or reduce capacity. The Panel agreed that the Terms of Reference have been met and agreed for CMP417 to proceed to Code Administrator Consultation. The Code Administrator Consultation will be published on 28 April, and this will close on 20 May 2026. Draft Final Modification Reports No Draft Final Modification Reports were presented to the Panel. Key Activities ahead of next panel Transmission Charging Methodologies Forum: 30 April 2026 Modification Proposal Deadline for March Panel: 07 May 2026 Papers Day: 14 May 2026 Public 5 Questions or feedback? Panel Secretary: Catia Gomes, Code Administrator Panel Technical Secretary: Ren Walker, Code Administrator Email: cusc.team@neso.energy