CUSC Headline Report 27 March 2026 1
Summary
CUSC Panel granted urgent treatment to CMP470, which introduces a commitment fee for grid connection technologies oversubscribed relative to Clean Power 2030 targets — a pricing mechanism for queue capacity. CMP440, which removes the zero price floor on demand TNUoS locational tariffs to restore locational investment signals, was unanimously recommended to Ofgem. CMP445 (pro-rated first-year TNUoS for generators) proceeds to Code Administrator Consultation opening 7 April 2026.
Why it matters
CMP470 is the most consequential item: pricing queue positions for oversubscribed technologies converts a free option into a cost, which should flush speculative capacity from the queue. CMP440 restores a locational price signal that was administratively suppressed — removing the zero floor lets negative tariffs signal where demand is actually useful to the system, rather than treating all locations as equal.
Key facts
- •CMP470 (Oversubscribed Technologies Commitment Fee) granted urgent treatment by Panel majority on 27 March 2026
- •CMP470 urgency decision requested from Ofgem by 2 April 2026
- •CMP470 introduces a securities floor for technologies oversubscribed against Clean Power 2030 capacity targets
- •CMP440 (removal of demand TNUoS zero price floor) unanimously recommended by Panel — Original and WACM1 both preferred
- •CMP440 Final Modification Report sent to Ofgem on 10 April 2026
- •CMP445 (pro-rated first-year generator TNUoS) Code Administrator Consultation opens 7 April, closes 1 May 2026
- •CMP316 (co-located generation TNUoS) decision now expected April/May 2026, slipped from March
- •CMP344 (TO revenue recovery clarification) decision now expected April 2026, slipped from March
- •CMP315/CMP375 (expansion constant review) decision date still TBC, pending National Pricing Reform
- •CMP423 (generation-weighted reference node) decision date TBC
- •CMP453 (BSUoS net billing at trading units) decision expected September 2026
Areas affected
Related programmes
Memo
What this is about
The CUSC Panel met on 27 March 2026 and made three decisions that matter. The headline is CMP470, which introduces a commitment fee for grid connection technologies that are oversubscribed relative to Clean Power 2030 targets. This is a pricing mechanism for queue capacity — it converts a free option on grid access into a cost, which should force speculative projects to either pay up or leave. The Panel granted urgent treatment by majority, with Ofgem's decision requested by 2 April 2026.
The other two items worth tracking: CMP440, which removes the zero price floor on demand TNUoS locational tariffs, received a unanimous Panel recommendation and goes to Ofgem on 10 April. CMP445, which pro-rates first-year TNUoS for generators, moves to Code Administrator Consultation opening 7 April. Together, these three modifications represent a coherent direction of travel — pricing signals being restored or introduced where they were previously absent or suppressed.
Key points
CMP470 — Oversubscribed Technologies Commitment Fee
The modification introduces a floor on connection securities through a commitment fee applied to technologies oversubscribed against Clean Power 2030 capacity targets. The logic is straightforward: if a technology class has more queue capacity than the system needs, holding a position should cost something. A free queue position is a call option with no premium — rational developers hoard them regardless of whether they intend to build. The 700 GW connection queue is the predictable result.
The Panel agreed CMP470 met Ofgem's urgency criterion (a) — meaning it addresses an issue that, if not resolved quickly, would cause significant commercial or operational harm. This sends the modification to a Workgroup on an accelerated timeline. The urgency designation itself is notable: the Panel is signalling that queue congestion is no longer a slow-burn governance problem but an acute one requiring immediate action.
The key design question for the Workgroup will be calibration. Set the fee too low and it changes nothing — speculative holders absorb it as a cost of doing business. Set it too high and it penalises genuine developers who face legitimate delays. The fee needs to be high enough to flush out projects that exist only on paper, without creating a barrier to entry for smaller developers who cannot warehouse capital against connection milestones.
CMP440 — Removal of the zero price floor on demand TNUoS locational tariffs
The Panel unanimously recommended both the Original and WACM1 to Ofgem. The modification removes the administrative floor that prevents demand TNUoS locational tariffs from going negative. This matters because a zero floor treats all locations as equally valuable to the system, which they are not. A data centre connecting in the north of Scotland, close to surplus generation, is worth more to the system than one connecting in the south-east. Negative tariffs would signal that — paying demand to locate where the system needs it.
The design includes a safeguard: the charging measurement period is widened for negative tariffs to prevent a perverse incentive for users to increase consumption purely to earn a payment. This is sensible. The signal should influence where demand locates, not how much it consumes at a given site.
The Final Modification Report goes to Ofgem on 10 April 2026. Given the unanimous recommendation, approval is likely, though Ofgem may take time given the interaction with National Pricing Reform and the broader TNUoS review (CMP315/CMP375, still awaiting decision since February 2024).
CMP445 — Pro-rated first-year TNUoS for generators
Generators currently pay a full year of TNUoS charges regardless of when they connect during the charging year. CMP445 would pro-rate the first year so a generator connecting in month ten pays two months, not twelve. The current approach is a penalty on commissioning timing that has nothing to do with system costs. The Code Administrator Consultation opens 7 April and closes 1 May 2026.
Other items of note
CMP469 (GC0186 cost recovery for restoration service obligations) was deferred to April to allow further discussion between the proposer and NESO. The backlog of pending Ofgem decisions continues to grow — seven modifications are awaiting Authority decisions, several with decision dates already pushed back. CMP315/CMP375 (expansion constant review) has been pending since February 2024 with no decision date, held up by the wider National Pricing Reform work.
What happens next
- CMP470: Ofgem urgency decision was due by 2 April 2026. If approved, the Workgroup begins immediately on an accelerated timeline. Watch for the fee calibration — the level and structure will determine whether this is a real queue discipline mechanism or a token gesture. - CMP440: Final Modification Report to Ofgem on 10 April 2026. Decision timeline unknown but likely Q2 2026 given the interaction with broader TNUoS reform. - CMP445: Code Administrator Consultation opens 7 April, closes 1 May 2026. - CMP469: Returns to the April Panel for governance route decision. - Next CUSC Panel: April 2026, which will also include the quarterly in-depth prioritisation stack review. - Modification Tracker: Updated version published 7 April 2026.
The direction is clear: the CUSC governance process is moving towards pricing mechanisms that replace administrative allocation. CMP470 prices queue capacity. CMP440 prices location for demand. CMP445 removes a timing penalty that distorts commissioning incentives. Each is individually modest. Together they represent a shift from queue-and-ration towards price-and-signal.
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 30 January and 27 February 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 will place 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. Therefore, a one-year time extension of the codified cost recovery mechanism is proposed to prevent the affected parties being commercially disadvantaged by the implementation of the new obligations. It was agreed that CM469 will be discussed at the April 2026 Panel meeting to allow further discussions between the Proposer and NESO. The Panel will discuss the governance route and next steps at the April 2026 Panel meeting. CMP469 documentation can be found here CMP470: Introducing an Oversubscribed Technologies Commitment Fee This modification seeks to introduce a floor on securities through an Oversubscribed Technologies Commitment Fee for all technologies which are oversubscribed relative to Clean Power 2030 capacity targets. CUSC Panel Headline Report 27 March 2026 Public 2 The Panel by majority agreed that CMP470 met the Authority’s Urgency criteria (a) and therefore recommended urgent treatment. Panel’s recommendation was sent on 27 March 2026 seeking an Authority decision by 5pm on 02 April 2026. The Panel recommended that CMP470 proceed to a Workgroup. The Panel agreed the Terms of Reference for the Workgroup. CMP470 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 ‘Enduring Expansion Constant & Expansion Factor Review’ 07 February 2024 TBC pending update on National Pricing Reform (previously 07 February 2025) CMP316 ‘TNUoS Charging Methodology for Co-located Generation’ 08 August 2025 April/May2026 (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 Public 3 CMP344 ‘Clarification of Transmission Licensee revenue recovery and the treatment of revenue adjustments in the Charging Methodology’ 09 July 2025 April 2026 (previously March 2026) CMP397 ‘Consequential changes required to CUSC Exhibits B and D to reflect CMP316 (Co- Located Generation Sites)’ 12 June 2024 April/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. Prioritisation Stack Every quarter the CUSC Panel hold a more in-depth review, the next in-depth review is scheduled for the April 2026 Panel. The latest prioritisation stack can be found here In flight Modifications CMP456: Cost recovery for legacy plant in relation to GC0168 The Panel approved the new timeline as submitted within the Panel Papers. CMP466: CMP456 consequential charging modification The Panel approved the new timeline as submitted within the Panel Papers. The next Modification Tracker will be published on 07 April 2026. Public 4 Workgroup Reports The following Workgroup Report was presented to the Panel: CMP445: Pro -rating first year TNUoS for Generators This modification seeks to amend the CUSC to ensure that Generators only pay TNUoS on a pro-rated basis from their Charging Date, during the first year of connection. The Panel agreed that the Terms of Reference have been met and agreed for CMP445 to proceed to Code Administrator Consultation. The Code Administrator Consultation will be published on 07 April 2026, and this will close on 01 May 2026. Draft Final Modification Reports The following Draft Final Modification Report was presented to the Panel: CMP440: Re – introduction of Demand TNUoS locational signals by removal of the zero price floor This CUSC modification proposes removing the current zero price floor from the Transmission Network Use of System (TNUoS) locational demand tariff for Final Demand, thereby re-introducing a locational investment price signal across all of Great Britain (GB). The potential for negative prices and the perverse incentive for Users to consume is removed by widening the period over which consumption is measured for charging against negative tariffs. The Panel recommended unanimously that the Original and WACM1 better facilitated the Applicable CUSC Objectives. The Final Modification Report will be sent to Ofgem on 10 April 2026. CMP440 documentation can be found here Key Activities ahead of next panel Transmission Charging Methodologies Forum: 02 April 2026 Modification Proposal Deadline for April Panel: 09 April 2026 Papers Day: 16 April 2026 Public 5 Questions or feedback? Panel Secretary/ Chair: Catia Gomes, Code Administrator Panel Technical Secretary: Ren Walker, Code Administrator Email: cusc.team@neso.energy