Transmission Constraint Licence Condition call for input: update and summary of responses
Summary
Ofgem update and summary of responses on the Transmission Constraint Licence Condition (TCLC) call for input. TCLC restricts generators from exploiting market power during constrained periods.
Why it matters
Stakeholder-engagement summary from the TCLC review. Sister to the June 2024 TCLC guidance decision. Shapes how the anti-gaming rule evolves as constraint patterns change with the renewables transition.
Areas affected
Memo
Transmission Constraint Licence Condition call for input: update and summary of responses | 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: Transmission Constraint Licence Condition call for input: update and summary of responses Publication type: Reports, plans and updates Publication date: 16 May 2025 Topic: Electricity generation Decision for: Transmission Constraint Licence Condition call for input - December 2023 Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Transmission constraints are any limits on the ability of the electricity transmission system – or any part of it – to transmit power from where it is supplied to where it is needed. Where transmission constraints occur, electricity generators can hold a position of market power as the electricity system operator might have limited options to manage the constraint. Standard licence condition 20A of the Generation Licence – the Transmission Constraint Licence Condition (TCLC) – exists to protect against this market power. By prohibiting licensees from obtaining an excessive benefit in relation to bids submitted in the Balancing Mechanism in transmission constraint periods, it helps to keep down balancing costs and, ultimately, consumers’ bills. In February 2024 we closed a call for input on whether any changes are required to the TCLC to ensure that it is as effective as possible in keeping bills down. To stimulate the conversation the call for input listed five initial options for extending or modifying the TCLC, although stakeholder suggestions were welcome on any other changes that could be made. This document summarises stakeholder feedback and provides an update on our thinking. Main document Update on the Transmission Constraint Licence Condition call for input [PDF, 286.83KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close