Proposed licence changes to enable TMO4+ Connections Reform
Summary
Ofgem consults on amendments to the Electricity System Operator Licence, Transmission Licence and Distribution Licence to support implementation of NESO's TMO4+ Connections Reform target model.
Why it matters
Operational scaffolding for Connections Reform. The TMO4+ target model is the design; these licence amendments are the rules of the road for NESO, TOs and DNOs while it operates. Every connection offer between Gate 2 and Whole Queue completion runs through these licence conditions. If the conditions have ambiguity, the reform will spawn dispute determinations.
Areas affected
Related programmes
Memo
What this is about
Ofgem is consulting on amendments to three licences — the Electricity System Operator Licence (held by NESO), the Transmission Licence (held by the TOs), and the Distribution Licence (held by the DNOs) — to provide the regulatory scaffolding for NESO's TMO4+ Connections Reform target model. The reform replaces the first-come-first-served queue with a gated process: projects must meet readiness and strategic-alignment tests to receive a connection offer, and the queue is rebuilt around those tests rather than around the date an application was submitted.
The licence changes are not the reform itself. The reform sits in NESO-led code modifications (CMP446 on the CUSC side, the corresponding Grid Code and Distribution Code modifications) and in three new methodology documents that NESO will own. The licence conditions do two things. First, they align existing obligations on NESO, TOs and DNOs with the new gated process, so that what the code modifications require is also what the licences require. Second, they create new licence obligations on NESO to develop, maintain and consult on the three new connections methodologies. This is the standard Ofgem pattern when a major reform runs partly through codes and partly through methodologies: put the methodology obligation in the licence so that NESO cannot drop it, and so that Ofgem retains a direct enforcement route if the methodology fails to deliver what the reform needs. The consultation closed on 7 January 2025 and Ofgem expects to publish decisions on the full package — licence changes, code modifications, and methodologies — in Q1 2025.
How to respond
The consultation closed at 5pm on 6 January 2025. Ofgem has marked the publication as Closed (awaiting decision) and is expected to publish decisions on the full Connections Reform package — licence changes, code modifications, and the three new methodologies — in Q1 2025.
For reference, the submission route during the open window was:
- Email: connections@ofgem.gov.uk - Format: the consultation response template (DOCX, 118.81KB) published alongside the main document, or a PDF/Word/Excel attachment sent to the same address. - Supporting documents to read before responding: the main policy consultation (Connections Reform — TMO4+ Licence Changes Policy Consultation), the explainer cover note, Annex A (Electricity System Operator Licence — Proposed Tracked Changes), and Annex B (Electricity Transmission Consolidated Standard Licence Conditions — Proposed Tracked Changes).
Stakeholders who missed the window should watch for the Q1 2025 statutory consultation Ofgem flagged in the document — that is the next formal opportunity to comment on the licence drafting before it is made.
Source text
Proposed licence changes to enable TMO4+ Connections Reform | 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: Proposed licence changes to enable TMO4+ Connections Reform Publication type: Consultation Publication date: 27 November 2024 Closed date: 7 January 2025 Status: Closed (awaiting decision) Topic: Electricity transmission, National Energy System Operator (NESO) Subtopic: Connections Print this page Related links Connections Reform Ofgem and DESNZ announce joint Connections Action Plan Open letter on the reformed regulatory framework on connections Embracing strategic energy plans Share the page Share on Facebook Share on Twitter Share on LinkedIn We want to hear your views on our proposed amendments to licence conditions within the following licences: Electricity System Operator Licence Transmission Licence Distribution Licence These changes will support the implementation of the latest proposed Target Model Options (TMO4+) for Connections Reform as proposed by NESO. Who should respond We want to hear views from National Energy System Operator (NESO), transmission and distribution network companies, current and future connecting customers and project developers. We also welcome responses from any stakeholders with an interest in the electricity connections process and ongoing reforms, as well as the public. Background Reforming the connection process is necessary to move away from the first come first served approach for connections, which is not fit for purpose anymore. Under the proposed reformed process, customers who are ready to connect and are required for the system should be able to connect to the electricity network quicker. The work on delivering this new, more efficient connections process has already begun, with NESO-led code modifications and new methodologies currently being designed and consulted on. Our proposals We are looking to amend existing licence conditions to align with the new gated connections process. This is set out in the proposed TMO4+ code modifications and methodologies. We are also proposing to introduce new licence conditions that place a responsibility on NESO to develop and maintain 3 new connections related methodologies. These methodology documents set out key aspects of the new process. Why your views matter Your feedback will help us further develop licence conditions that support the proposed TMO4+ connections process ahead of statutory consultation early next year. We expect to publish our decisions in the first quarter of 2025 on the full Connections Reform package which includes licence changes, code modifications and the methodologies. How to respond Before you start the consultation form, you will also need to read: Annex A - Electricity System Operator Licence - Proposed Tracked Changes Annex B - Electricity Transmission Consolidated Standard Licence Conditions - Proposed Tracked Changes Please send your feedback to connections@ofgem.gov.uk by 5pm on 6 January 2025 using the consultation response template below. You can also email us if you want to send a PDF (pdf), Word (doc) or Excel (xls) document as part of your response. Main document Connections Reform - TMO4+ Licence Changes Policy Consultation [PDF, 680.84KB] Subsidiary documents Connections Reform - Ofgem Policy Consultation - explainer cover note [PDF, 199.78KB] Annex A - Electricity System Operator Licence - Proposed Tracked Changes [PDF, 1.84MB] Annex B - Electricity Transmission Consolidated Standard Licence Conditions - Proposed Tracked Changes [PDF, 1.21MB] Consultation response form [DOCX, 118.81KB] Print this page Related links Connections Reform Ofgem and DESNZ announce joint Connections Action Plan Open letter on the reformed regulatory framework on connections Embracing strategic energy plans Share the page Share on Facebook Share on Twitter Share on LinkedIn Close