Networks
Investment, charging, regulation
▶Briefing27 Mar 2026
In one line
Britain's electricity networks are regulated on cost: what it costs to build, what it costs to operate, what the cost of capital is. Nobody in the system asks about value.
The thesis
The entire network regulation framework is oriented around cost. Ofgem assesses what network companies need to spend. NESO forecasts what needs to be built. Transmission owners propose projects and Ofgem sets their allowed revenue. CATO competitive tenders reveal the cost of construction. TNUoS charges recover those costs from users. At every stage, the question is the same: how much does this cost?
The question that is never asked: how much is this worth? What would a developer pay for transmission capacity at a specific location? What would a data centre pay for a guaranteed connection in 2027 rather than 2032? What is the value of reinforcing the Scottish boundary versus the East Anglia coast? These are questions only a price can answer, because value is not a property of the asset but of the people who would use it. It exists only in the act of choosing, and no forecast can replicate it. This is the knowledge problem that Hayek described in 1945, applied to infrastructure.
Misaligned incentives sit on top of this knowledge deficit. Network companies earn a return on what they build, so they build. But even with perfect incentives, the system would still lack the information that prices would reveal. Fix the incentives and the knowledge problem remains. Fix the knowledge problem and the incentives follow.
Why networks are regulated
Electricity networks are natural monopolies. It makes no economic sense to build two sets of transmission pylons between the same locations. As such there is no competitive market for transmission capacity in the way there is for generation or retail supply. Where there is no market, there is no price. Where there is no price, someone has to decide how much to invest, what to build, and what to charge for it.
In Britain, that someone is Ofgem. The regulator sets the revenue that each network company is allowed to earn over a multi-year period, based on a forecast of what the network needs. This is the price control. It replaces the price that a competitive market would produce with an administratively determined allowance. The question is whether administrative determination can approximate what a market would discover. The history of network regulation suggests it cannot, but that the alternatives are worse, so the task is to make the approximation as good as possible.
How the system is structured
The electricity network has two layers. Transmission is the high-voltage backbone: 275kV and 400kV lines running from power stations and offshore wind farms to the regions where electricity is consumed. Three companies own and operate it: National Grid Electricity Transmission (England and Wales), SP Transmission (central and southern Scotland), and Scottish Hydro Electric Transmission (northern Scotland and islands). Distribution is the local network: 132kV down to 230V, carrying power from the transmission grid to homes and businesses. Six distribution network operators (DNOs) cover different regions.
Each layer has its own price control, set by Ofgem on different timetables. RIIO-ET3 (electricity transmission) runs April 2026 to March 2031. RIIO-ED2 (electricity distribution) runs 2023 to 2028. Gas transmission and gas distribution have their own controls within RIIO-3. The consumer's bill reflects the cost of all four, but they are determined separately, by different teams within Ofgem, on different evidence bases.
How the price control works
RIIO stands for Revenue = Incentives + Innovation + Outputs. The name describes the aspiration, not the reality. In practice, a price control works as follows:
1. Each network company submits a business plan to Ofgem, proposing what it wants to spend over the control period and why. 2. NESO provides forecasts of future demand, generation, and network requirements. These feed into the network companies' plans. 3. Ofgem assesses the plans, challenges costs it considers excessive, and sets a total expenditure (totex) allowance. 4. Ofgem sets a rate of return on the Regulatory Asset Value (RAV). The RAV is the cumulative value of the network company's assets. The rate of return is what the company earns on that base. 5. The allowed revenue is recovered from users through network charges: TNUoS (Transmission Network Use of System) for transmission, DUoS (Distribution Use of System) for distribution.
The critical feature: the network company earns a return on its asset base. The more it builds, the larger its RAV, the larger its guaranteed revenue. This is the Averch-Johnson effect (1962): rate-of-return regulation on capital creates systematic overinvestment. Not because the companies are dishonest, but because the incentive structure rewards building.
What RIIO-3 funds
Ofgem's RIIO-3 Final Determinations (December 2025) approved £28.7bn of upfront investment for April 2026 to March 2031, an 18% increase from Draft Determinations. This sits within a wider investment pipeline of around £90bn over the period.
Electricity transmission (ET3, £10.7bn baseline) is expansion: new lines, subsea cables, and substations to connect offshore wind, meet rising demand, and reduce constraint costs. Ofgem states that across the RIIO-ET3 period, "over £70bn of investment may be required." Only £10.7bn is approved upfront. The rest is released through in-period mechanisms as projects mature and costs become clearer. This is the largest grid expansion since the 1960s.
Gas distribution (£14.8bn) is dominated by the iron mains replacement programme, a safety obligation. Cast iron pipes installed in the Victorian era leak and corrode. Replacing them with polyethylene is the single largest item in the gas distribution budget. This is maintenance, not expansion.
Gas transmission (£3.2bn) is maintenance of the existing high-pressure network. Hydrogen readiness spending was deferred: Ofgem decided hydrogen transport infrastructure will not be funded through RIIO-3 but via the government's Hydrogen Transport Business Model.
Bill impact: £108 per household per year by 2031, split £60 electricity transmission and £48 gas. Ofgem estimates savings of £80 from reduced constraint costs, for a net impact of around £30. Electricity distribution (ED3, starting April 2028) is not yet determined. The consumer will not see the full network cost until it arrives.
What’s actually being built
Almost all of the major electricity transmission projects solve one problem: moving wind power from where it is generated (Scotland, the North Sea, East Anglia) to where it is needed (the Midlands, London, the South East).
Scotland has 13 GW of installed wind capacity but only 4 GW of local demand. The existing grid can move about 6.5 GW across the Scotland-England boundary. When the wind blows hard, power has nowhere to go. Wind farms get paid to switch off (£380m in 2025) and gas plants further south get paid to switch on instead (£1.08bn). Total curtailment cost in 2025: £1.46bn. 98% of it was in Scotland.
Scotland to England — the biggest spend. Four subsea HVDC cables running down the east coast bypass the overloaded onshore grid. Eastern Green Link 1 (Torness to County Durham, 2 GW, £2.5bn, 2029). Eastern Green Link 2 (Peterhead to Drax in Yorkshire, 2 GW, £4.3bn, 2029). Eastern Green Links 3 and 4 (Aberdeenshire and Fife to Lincolnshire, £3.4bn combined, 2034). Together they nearly double the Scotland-England boundary capacity. Plus onshore reinforcement: Cross Border Connection across the Scottish border, Carlisle to Newcastle upgrade, Denny to Wishaw 400kV within Scotland.
North Sea offshore wind to inland grid. North Humber to High Marnham carries Dogger Bank and Hornsea wind power into Nottinghamshire. Grimsby to Walpole reinforces the Humber corridor into Lincolnshire. Yorkshire Green adds new substations and lines where offshore wind lands. Brinsworth to High Marnham and Chesterfield to Willington strengthen the North Midlands backbone.
East Anglia offshore wind and Sizewell C to London and the South East. East Anglia currently carries about 3.2 GW. Over 15 GW of new generation is connecting there plus 4.5 GW of new interconnectors. Sea Link (Suffolk to Kent, subsea cable) carries Sizewell C and offshore wind south. Norwich to Tilbury reinforces the overhead line route. Bramford to Twinstead adds capacity for new East Anglia connections.
Nuclear. Hinkley Connection links Hinkley Point C to the South West grid.
London. London Power Tunnels (£1bn) rewires south London underground.
The interactive map of planned network projects is on the NESO Beyond 2030 web map at neso.energy/publications/beyond-2030/web-map. National Grid lists individual projects at nationalgrid.com/the-great-grid-upgrade.
Competition and its limits
CATOs (Competitively Appointed Transmission Owners) introduce competitive tendering for new, separable transmission assets. The regulatory framework went live in April 2025 (CMP403/CMP404 implemented). In principle, CATOs create price discovery for construction: competing bidders reveal the true cost of building an asset, breaking the incumbent TO's information advantage on costs.
In practice, CATOs cover a small fraction of RIIO-3 investment. The large majority of the £28.1bn baseline is delivered by incumbent TOs at regulator-set returns. ASTI (Accelerated Strategic Transmission Investment) projects, worth approximately £20bn, are assigned directly to incumbents with no competitive process. Ofgem's language favours incumbent delivery "where competition would delay project delivery," which in a programme with 2030 deadlines means most of the programme.
CATOs answer the question "how much does it cost to build this asset?" They do not answer "should this asset be built at all, in this location, at this time, relative to alternatives?" That second question is the knowledge problem.
The planning chain
NESO produces the Future Energy Scenarios and the transitional Centralised Strategic Network Plan (tCSNP2, March 2024). The full CSNP is due 2026. These documents forecast where generation will connect, where demand will grow, and what transmission capacity is needed. Transmission owners propose projects to meet those forecasts. Ofgem funds them.
A forecast that says "10GW of offshore wind will connect in East Anglia by 2030" is a planning assumption. A price that says "capacity in East Anglia is expensive" is information that changes behaviour. The first tells you what to build. The second tells you whether building is the right response. NESO can produce the first. Only a market can produce the second.
This is the calculation problem (Mises, 1920; Hayek, 1945) applied to infrastructure. NESO's models can calculate physical flows and identify where the grid is constrained. What they cannot calculate is the value that different users place on capacity at different locations. That value is revealed through prices, not through forecasts. The planning chain produces a physically coherent network plan. Whether that plan allocates scarce capital efficiently is a question it cannot answer.
The charging mess
The Connection and Use of System Code (CUSC) governs how transmission costs are allocated to users. TNUoS charges are the mechanism by which the costs of the transmission network are recovered from generators and demand users. In theory, TNUoS should send locational signals: charging more where the network is congested, less where there is spare capacity, directing investment and usage to where it is most efficient.
There are 14 HIGH-impact CUSC modifications in progress. At least 8 are attempts to fix charging signals that do not reflect costs.
CMP433 (OpTIC) would replace the Transport component of TNUoS with an economic model based on costs a user actually imposes. CMP440 would reintroduce negative locational demand charges, removed in 2020. CMP442 would let generators fix TNUoS against forecasted tariffs, shifting risk to consumers. CMP423 would switch the Reference Node from demand-weighted to generation-weighted, reallocating billions between generators and demand.
Each is individually rational. Together they reveal a system that cannot agree on the most basic question: who should pay for transmission capacity, and how much?
Locational signals should direct usage to where the grid has spare capacity. But every locational signal creates losers, and the losers lobby to blunt the signal. CMP463, approved by Ofgem, froze Specific Onshore Expansion Factors at 2025/26 levels "for stability." Stability here means suppressing the price signal that would tell generators their location imposes costs. The regulated industry demands the regulation that protects it from the price system. Stigler described this in 1971. TNUoS charges are rising 60% in April 2026 regardless, driven by RIIO-3 cost recovery, but the locational component of those charges remains blunted.
Cost allocation
Ofgem's CAR Review (July 2025) examines how network, wholesale, policy, and retail costs are distributed across the system. This is the right question asked at the wrong level. CAR treats allocation as a parameter to adjust within the existing framework. The structural question is whether administrative cost allocation can produce the outcome that a price system would.
The standing charges debate illustrates the problem. Ofgem proposed reducing standing charges by £20-£100 annually by moving costs to unit rates (August 2024). This does not change the total cost. It changes who bears it. A distributional choice presented as a pricing reform.
The missing reform
REMA's Second Consultation (March 2024) proposed locational marginal pricing. LMP would solve the transmission charging problem by embedding location value directly into the wholesale price. A generator in a constrained zone would receive a lower price. A demand user in the same zone would pay more. The price would carry the information that TNUoS attempts, and fails, to carry.
REMA has gone quiet. The government prefers a "zonal" approach, which is LMP's politically acceptable cousin. The difference is between a rough approximation and an accurate signal. Britain's history with transmission charging suggests it will choose the approximation, then spend a decade fixing it through CUSC modifications.
Three things to watch
RIIO-3 reopeners. The baseline is £28bn. The pathway to £90bn runs through uncertainty mechanisms. Each reopener is a spending decision justified by forecasts. Whether anyone tests those forecasts against reality will determine whether the final bill is £28bn or £90bn.
CAR Review outcomes. If Ofgem produces parameter adjustments within the existing framework, it will have missed the structural problem. If it opens the door to locational pricing, it is the most consequential Ofgem decision this decade.
CATOs at scale. The framework exists. No project has been tendered. If CATOs remain confined to a handful of separable assets while ASTI delivers £20bn through incumbents, competitive tendering will have been the exception that proves the monopoly rule.
▶Timeline
▶Open consultations (12)
NESO launches a call for input on Reformed National Pricing (RNP) proposals to reform dispatch arrangements and electricity market design, with responses due 14 April 2026. The RNP programme aims to strengthen investment signals, improve operational efficiency, and reduce constraint costs within Great Britain's retained single national wholesale market. Government will provide legislation as required for timely delivery.
Ofgem is consulting on Early Construction Funding for Scottish Power Transmission's Denny to Wishaw 400kV reinforcement project under the ASTI re-opener mechanism. The consultation closes 15 April 2026 with responses to be submitted to transmission.acceleration@ofgem.gov.uk. This follows SPT's application for accelerated funding to begin construction ahead of the normal RIIO price control cycle.
Government proposes using new statutory powers to accelerate grid connections for strategic demand projects, including data centres and AI Growth Zones, through queue management reforms, capacity reservation, and reallocation mechanisms. The proposals would impose higher financial requirements on data centres to address speculation in the 125GW demand queue, while creating prioritisation systems for government-identified strategic projects. Consultation closes 15 April 2026.
Ofgem proposes removing distribution network operators' reporting requirements under Standard Licence Condition 31E, transferring responsibility to Elexon as Market Facilitator from April 2027. The modification eliminates DNO obligations to report flexibility service procurement data to Ofgem. Statutory consultation follows in June 2026 with final decision by August 2026.
Ofgem consults on draft determination for NGET's RIIO-2 Visual Impact Mitigation re-opener to underground transmission lines in the Cotswolds AONB. Closes 28 April 2026.
Ofgem seeks stakeholder evidence for the third-year assessment of Distribution Network Operators' performance as Distribution System Operators under RIIO-ED2. Responses close 30 April 2026, with the independent panel's assessment following this summer.
Ofgem proposes strategic planning-led interconnector development where NESO identifies projects and government sets delivery and financing arrangements. The consultation closes 1 May 2026. This shifts from developer-led merchant models to centrally planned interconnection aligned with wider system needs.
Ofgem proposes adapting the energy price cap wholesale allowance methodology to accommodate Market Wide Half-Hourly Settlement (MHHS), which changes how suppliers are settled when purchasing electricity to match customer demand. The consultation seeks views on setting wholesale allowances that track efficient costs, accounting for cost differences across customer groups, and developing time-of-use price cap variants. Responses are due by 5 May 2026.
Ofgem proposes standardised reporting requirements for network companies to disclose procurement practices, local content, and supplier details for electricity network equipment and services. The consultation closes 10 May 2026 and explores potential adjustments to encourage greater domestic supply chain participation within existing regulatory frameworks. This follows Great Britain's planned network expansion requiring unprecedented equipment procurement.
Ofgem consults on modifications to RIIO-3 associated documents, including crossover guidance for GD2/GD3 and GT2/GT3 adjustments, plus NGET PCD reporting requirements. Closes 13 May 2026.
DESNZ and Ofgem propose mandatory baseline cyber security requirements for all 1,400+ Ofgem licensees through licence conditions, using Cyber Essentials certification as the starting point. The proposal also expands Network and Information Systems (NIS) Regulations to capture more distributed energy operators deemed critical to system stability. NESO will provide independent advice on which services and operators should fall under the enhanced NIS framework.
Ofgem sets out five options for redesigning transmission network charges to steer investment towards Strategic Spatial Energy Plan locations, ranging from tweaking existing TNUoS to auctioning connection capacity by zone. Charges would apply to new generators, demand, and storage. Responses by 26 May 2026, reforms targeted for 2029.
▶High impact (53)
CMP470 proposes introducing a commitment fee floor for all technologies that are oversubscribed relative to Clean Power 2030 capacity targets. The modification targets generation developers with high impact and transmission owners with medium impact. It is proceeding through urgent governance route to workgroup stage.
DESNZ and Ofgem propose mandatory baseline cyber security requirements for all 1,400+ Ofgem licensees through licence conditions, using Cyber Essentials certification as the starting point. The proposal also expands Network and Information Systems (NIS) Regulations to capture more distributed energy operators deemed critical to system stability. NESO will provide independent advice on which services and operators should fall under the enhanced NIS framework.
Ofgem sets out five options for redesigning transmission network charges to steer investment towards Strategic Spatial Energy Plan locations, ranging from tweaking existing TNUoS to auctioning connection capacity by zone. Charges would apply to new generators, demand, and storage. Responses by 26 May 2026, reforms targeted for 2029.
Ofgem proposes adapting the energy price cap wholesale allowance methodology to accommodate Market Wide Half-Hourly Settlement (MHHS), which changes how suppliers are settled when purchasing electricity to match customer demand. The consultation seeks views on setting wholesale allowances that track efficient costs, accounting for cost differences across customer groups, and developing time-of-use price cap variants. Responses are due by 5 May 2026.
Ofgem approved NESO's request to extend and amend the derogation from Article 6(4) of the Electricity Regulation for its Demand Flexibility Service, a balancing energy product. The derogation allows NESO to operate DFS without full compliance with standard balancing market requirements. The decision was made on 25 March 2026 following NESO's proposal submitted on 30 January 2026.
Government sets strategic framework for expanding interconnection beyond current 10.3GW operational capacity and 7.45GW under development, moving from market-led Cap and Floor regime to planned approach aligned with NESO's Strategic Spatial Energy Plan due autumn 2027. New delivery framework will identify optimal location, capacity and connecting countries for interconnectors and Offshore Hybrid Assets combining cables with wind farms.
Ofgem proposes strategic planning-led interconnector development where NESO identifies projects and government sets delivery and financing arrangements. The consultation closes 1 May 2026. This shifts from developer-led merchant models to centrally planned interconnection aligned with wider system needs.
DESNZ proposes a bill discount scheme offering households within 500 metres of new transmission infrastructure £250 annually for 10 years, funded by an obligation on all electricity suppliers who will pass costs to all customers via bills. The scheme covers new overhead lines and substations from 2027, with eligible households identified automatically via their MPAN, plus an opt-in route for those on commercial meters or off-grid. Administrative costs are socialised across all billpayers while benefits flow only to those hosting infrastructure.
Government introduces regulations requiring majority of new homes in England to have solar panels fitted as standard from 2028 under the Future Homes Standard, removes regulatory barriers for plug-in solar panels under 800W to connect via domestic sockets without electrician installation, and launches trial allowing suppliers to offer discounted electricity on windy days in constrained areas instead of paying wind farms to switch off. The Future Homes Standard also mandates low-carbon heating systems like heat pumps in new builds, while plug-in solar will be available in shops within months through retailers like Lidl and Amazon.
Ofgem proposes demand connections reform structured around 'Curate, Plan and Connect' pillars to address queue viability, project progression delays, and lack of strategic prioritisation. The demand queue has grown substantially with many non-viable projects blocking viable ones from connecting. The reform builds on TMO4+ and involves NESO and network companies in developing prioritisation mechanisms for strategically important projects.
NESO published results from its November 2025 Call for Input on demand connections, receiving 243 responses representing over 90GW of demand capability. Data centres dominate at 55% of total capacity (50.8GW), with 81% of all projects willing to accept alternative connection arrangements like phased or non-firm connections for earlier dates. Connection dates span 2027-2035, with 40% of projects seeking pre-2030 energisation.
Government proposes using new statutory powers to accelerate grid connections for strategic demand projects, including data centres and AI Growth Zones, through queue management reforms, capacity reservation, and reallocation mechanisms. The proposals would impose higher financial requirements on data centres to address speculation in the 125GW demand queue, while creating prioritisation systems for government-identified strategic projects. Consultation closes 15 April 2026.
DESNZ will enable government to prioritise strategically important demand projects (AI data centres, industrial sites) in transmission connection queues while requiring higher financial commitments from developers to tackle speculative applications. The demand connection queue grew 460% in six months to June 2025, creating waits up to 15 years. Ofgem will consult on increased deposits or fees for queue participants who miss milestones.
NESO updates queue management guidance with new milestone calculation methods and evidence requirements for transmission connections. The guidance incorporates recent code changes CMP434 and CMP435 that implement connections reform, establishing eight mandatory milestones that developers must meet or face termination. Projects must now demonstrate progression through planning, land rights, construction planning, financial commitment, and construction initiation phases with specific evidence requirements and timelines calculated backwards from completion dates.
NESO has issued the Go-Live Notice for Slow Reserve service, opening the Enduring Auction Capability (EAC) auction on 17 March with the first auction on 31 March 2026. This triggers the end of STOR service at 05:00 on 1 April 2026. Slow Reserve provides frequency management through post-fault energy balancing, requiring units to respond within 15 minutes with minimum 1MW capability.
NESO launches a call for input on Reformed National Pricing (RNP) proposals to reform dispatch arrangements and electricity market design, with responses due 14 April 2026. The RNP programme aims to strengthen investment signals, improve operational efficiency, and reduce constraint costs within Great Britain's retained single national wholesale market. Government will provide legislation as required for timely delivery.
DESNZ proposes creating a new Load Control Licence regime, making it illegal to control customer electricity loads without Ofgem authorisation from end-2026. The licence covers load controllers and Flexibility Service Providers, with cyber security requirements for the former and consumer protection rules for the latter. A 12-month transition period runs from licence applications opening to enforcement.
CMP466 enables generators to recover costs of providing Electromagnetic Transient (EMT) models required under Grid Code GC0168. The modification follows after CMP456 and addresses the financial burden placed on existing generators, particularly older plant with complex systems. CUSC Panel initially rejected urgency but assigned high priority status on 5 February 2026.
Ofgem approved CMP463, freezing Specific Onshore Expansion Factors at 2025/26 levels from 1 April 2026. The modification prevents large unexpected increases in these TNUoS charges that would have resulted from the 2026 Price Control. The freeze is temporary, pending a fundamental TNUoS review.
NESO proposes to socialise transmission connection asset costs and cap customer contributions through CUSC modification CMP460. The modification seeks to create more certain charging by reducing direct customer charges for connection infrastructure. Workgroup consultation runs 28 January to 18 February 2026.
Ofgem reviews how energy system costs are allocated and recovered across electricity and gas consumers. Examines whether the current split of network, policy, and balancing costs between fuels and customer groups is fit for purpose.
Ofgem opens review of energy system cost allocation and recovery, examining how network, wholesale, policy, and retail costs are recovered from domestic and non-domestic consumers. The review considers alternatives to current standing charge structure, including block tariffs, time-of-use charging, location-based pricing, and ability-to-pay options. Consultation closes 24 September 2025 with policy options expected end-2025.
DESNZ consults on streamlining land rights and consents processes for electricity network infrastructure to enable faster deployment. The consultation follows a 2022 call for evidence and targets reducing costs, complexity and delays that currently hinder network projects. Minor changes to existing infrastructure will be fast-tracked to free resources for complex cases requiring detailed scrutiny.
CMP456 creates a cost recovery mechanism for generators required to produce Electro Magnetic Transient (EMT) models under GC0168, shifting the financial burden from plant operators to system users. The modification addresses 'significant' costs imposed on older generators with multiple discrete systems who gain no direct benefit from producing these grid stability models. Authority rejected urgent processing in December 2024, with the CUSC Panel designating this high priority in January 2025.
DESNZ and Ofgem propose standard licence conditions for code managers and update CMA appeals process following Energy Act 2023. Code managers will replace industry panels with licensed entities that set budgets, recommend modifications to Ofgem, and align codes with Ofgem's Strategic Direction Statement. Appeals trigger when Ofgem disagrees with code manager recommendations, replacing current panel-based triggers.
CMP453 proposes to charge BSUoS on net rather than gross flows for BSC Trading Units, meaning customers who export more than they import would not pay system balancing costs. The CUSC Panel recommended the change by majority on 31 October 2025, with the Final Modification Report sent to Ofgem on 11 November 2025. The modification follows Standard Governance through a Workgroup process.
NESO proposes Grid Code changes to replace Mandatory Frequency Response (MFR) with a new Real-time Dynamic Regulation service from 2026/27. The two products will run in parallel until 2029 before MFR is phased out. The Panel rejected the initial proposal in March 2026 for lacking clarity on defect and scope.
DESNZ launches a review of Ofgem's role and powers, citing consumer protection concerns and the need for higher standards in energy markets. The review will examine the regulator's functions and delivery mechanisms. No specific timeline or scope limitations are provided.
NESO formalises a Demand Control Rotation Protocol allowing rolling blackouts for 3-24 hours during supply shortfalls, modifying Grid Code OC6. The modification affects Distribution Network Operators, NESO, and consumers, with cross-code impacts on the Distribution Code. Panel recommendation has been deferred to address Load Lock definition issues with the Energy Network Association.
CMP445 proposes to pro-rate first-year TNUoS charges for generators from their charging date rather than charging the full annual amount upfront. The modification was denied urgent treatment by the Authority in December 2024 and is proceeding through standard governance, with workgroup consultation closing 22 August 2025. The CUSC Panel placed this high on their prioritisation stack in March 2025.
CMP442 allows generators to fix their TNUoS charges against NESO's forecasted tariffs, converting variable transmission charges into predictable costs. The modification follows standard governance through workgroup process, with first workgroup meeting planned for 16 December 2024. CUSC Panel initially prioritised this as high but downgraded to medium priority in February 2025 following Ofgem's transmission charging modification prioritisation guidance.
Ofgem proposes reducing domestic standing charges by £20-£100 annually by moving supplier operating costs to unit rates, while exploring tariff diversification options. The consultation seeks views on rebalancing the £135 annual operating cost allocation between fixed daily charges and consumption-based rates. Responses close September 20, with potential implementation April 2025.
CUSC modification CMP440 removes the zero price floor from demand TNUoS locational tariffs, reintroducing negative prices as investment signals. Negative tariffs apply over extended consumption measurement periods to prevent gaming. Code Administration Consultation runs 9 February to 3 March 2026.
OpTIC replaces the Transport component of TNUoS with an economic market model that creates transmission charges based on assumed optimal network investment in a zonal market structure. The proposal aims to charge generators and suppliers as if they operated in a zonal wholesale market rather than the current uniform pricing system. Workgroup activity starts Spring 2025 after the CUSC Panel prioritised it as Medium.
Ofgem and DESNZ propose new licences for the National Energy System Operator (NESO), which will combine electricity system operation and gas system planning functions. NESO will hold both an Electricity System Operator licence and a Gas System Planner licence when designated as the Independent System Operator and Planner (ISOP). The consultation also proposes modifications to transmission, distribution, generation, supply, interconnector, smart meter communication, and gas transporter licences to accommodate NESO's expanded role.
Ofgem approves CMP411, introducing Anticipatory Investment (AI) into Section 14 charging methodologies for offshore transmission. The mechanism allows Offshore Transmission Owners to build grid capacity ahead of confirmed customer demand and recover costs through charges. Decision takes effect immediately on 28 March 2024.
Ofgem consults on its minded-to position for Eastern Green Link 2 project assessment under the Accelerated Strategic Transmission Investment (ASTI) mechanism. EGL2 is a 2GW HVDC transmission link connecting Scotland to England. The consultation closed 27 April 2024 with a decision already published.
Ofgem consults on approving £1.8bn early construction funding for eight Scottish Hydro Electric Transmission projects under the Accelerated Strategic Transmission Investment reopener. The projects include major reinforcements across Scotland's transmission network, with funding recovered through transmission charges before construction completion. Decision expected by summer 2024 following consultation closure on 27 April.
Ofgem consults on its minded-to position for Eastern Green Link 1 under the new Accelerated Strategic Transmission Investment (ASTI) mechanism. EGL1 is the first project assessed under ASTI, which allows pre-construction spending on strategic transmission projects before full needs case approval. The consultation closed on 18 April 2024 with a decision now made.
DESNZ launches second REMA consultation with narrowed options for fundamental electricity market redesign. The consultation runs until May 2024 and follows the first consultation's identification of market failures in current arrangements. This represents the most significant potential reform to GB electricity markets since BETTA, with options including central dispatch, locational pricing, and enhanced market-based coordination.
Grid Code modification GC0168 will require certain generators and network operators to provide electromagnetic transient (EMT) models to NESO for analysis of system stability as inverter-based resources displace synchronous generation. The modification follows standard governance through a workgroup process, with high impact on generators, transmission operators, distribution networks, interconnectors and transmission owners. Timeline has been repeatedly delayed, with workgroup report submitted June 2025 but Panel requesting further legal text review.
Ofgem grants urgency for CMP428, which addresses user commitment liabilities for onshore transmission circuits in the HND (network design). Changes how generators connecting under the HND framework provide financial security for transmission investment.
Ofgem's initial project assessment of Offshore Hybrid Asset pilot projects. OHAs combine offshore wind connections with interconnector functionality, allowing cross-border power flows on the same infrastructure.
Ofgem's initial project assessment for the third cap and floor window for electricity interconnectors. Assesses new interconnector projects seeking the regulated revenue framework that guarantees a minimum return while capping upside.
Ofgem decision on urgency for CMP430, which adjusts TNUoS charging from 2025 to support Market-Wide Half-Hourly Settlement implementation. Changes how transmission charges interact with the move to half-hourly settlement.
Ofgem Authority decision on CMP398 and CMP412, CUSC modifications related to transmission charging methodology. These modifications change how transmission network costs are allocated.
Ofgem policy update on early competition in onshore electricity transmission networks. Progresses the framework for competitively tendering new onshore transmission projects instead of defaulting to incumbent TOs.
CMP423 proposes switching from a demand-weighted to generation-weighted Reference Node for TNUoS charging calculations. The CUSC Panel has recommended approval by majority, with the Final Modification Report sent to Ofgem on 9 December 2025. This changes how transmission charges are calculated and allocated across the network.
CMP419 proposes to revise generation transmission charging zones to include offshore wind farms connected under the Holistic Network Design, allowing these generators to pay wider transmission tariffs rather than local rates. The modification has been deprioritised from Medium-High to Low as of September 2025, with workgroup activity stalled since 2024. This follows Authority expectations from previous zoning decisions CMP324 and CMP325.
CMP405 proposes to separate TNUoS demand charges into year-round locational signals and peak security signals, charging storage that imports outside Triad periods while rewarding it during other times. The modification has been deprioritised as low priority by CUSC Panel despite proposer requests for urgency, with Ofgem rejecting urgent treatment in January 2025. Panel confirmed low priority status in March and September 2025, effectively stalling progress.
Ofgem removes BSUoS charges from generators from 1 April 2023, shifting system balancing costs entirely to demand. CfD projects in Allocation Round 4 will have strike prices adjusted downward from that date to reflect the removal of this cost. The change implements code modification CMP308.
CMP375 proposes changes to how the Expansion Constant and Expansion Factors are calculated in TNUoS charging, affecting how transmission network investment costs are recovered from users. The modification received unanimous Panel support for the Original solution and majority support for WACM2 in January 2024. Ofgem's decision date has slipped repeatedly from September 2024 to February 2025, with the current expected decision date to be confirmed.
CMP315 proposes to review how the transmission network expansion constant is determined, which directly affects locational TNUoS charges paid by generators and large users. The modification has been in development since 2019, with the final decision now expected by February 2025. The Panel recommended the original solution by majority vote in January 2024.
▶All publications (250)
DESNZ evaluates the smart metering roll-out covering research, monitoring and future evaluation plans for GB smart meter deployment.
Ofgem consults on draft determination for NGET's RIIO-2 Visual Impact Mitigation re-opener to underground transmission lines in the Cotswolds AONB. Closes 28 April 2026.
Ofgem consults on modifications to RIIO-3 associated documents, including crossover guidance for GD2/GD3 and GT2/GT3 adjustments, plus NGET PCD reporting requirements. Closes 13 May 2026.
Elexon launches a dashboard tracking supplier progress towards Market-Wide Half-Hourly Settlement (MHHS). Provides visibility on which suppliers are meeting migration milestones.
DESNZ inviting local authorities to submit information on heat network zone opportunity areas by 29 May 2026 to inform the future zoning pipeline. This precedes statutory formation of the Zoning Authority under the forthcoming Heat Network Zoning SI.
Elexon launching API-based asset registration for the Balancing Mechanism on 31 March 2026, linking to their Customer Solution Platform. Reduces friction for flexibility providers entering the BM.
Elexon Director Victoria Moxham discusses flexibility, data, and net zero transition on the Powerverse podcast. No new policy or market announcements.
DCRP/MP/25/01 considers potential changes to Distribution Code Document 6 (DOC6) following Grid Code modification GC0176, which introduces a Demand Control Rotation Protocol. The joint workgroup reviews whether distribution code amendments are needed to align with new grid code provisions for demand control. This appears to be a procedural alignment exercise following grid code changes.
The Distribution Code proposes consolidating EREC G98 and EREC G99 distributed generation connection guides into a single document. This annual revision follows Distribution Code requirements with consultation planned for March 2025. The change streamlines guidance for generators connecting at different scales rather than altering connection rules themselves.
DCRP/MP/25/03 proposes modifications to Engineering Recommendation G87 Issue 3, a technical standard governing electrical connections to distribution networks. The modification has been reviewed by ENA's Technical Author Service and is now under consultation. G87 sets technical requirements for equipment connecting to distribution networks.
This Distribution Code modification proposes changes to Engineering Recommendation G12 Issue 6, reviewed through ENA's Technical Author Service. The consultation pack references two documents (DCRP/MP/25/04 and DCRP/MP/25/04A) but provides no detail on what changes are proposed. The modification was published 29 March 2026.
Distribution Network Operators must now follow standardised technical procedures when providing new connection points to premises that already have connections, or are adjacent to premises with existing connections, regardless of which DNO provided the original connection. The new EREC G94 standard addresses safety and technical risks from multiple connection points in close proximity. This responds to increased demand for additional connections driven by EV charging infrastructure.
The Distribution Code modification EREC G59 Issue 3 A8 adds supplementary sections to facilitate intentional islanding during system restoration processes. This builds on existing Engineering Recommendation G59 guidance for distributed energy resources. The modification enables controlled isolation of network sections while maintaining local supply during wider system recovery.
EREC G99 adds supplementary sections to facilitate intentional islanding during system restoration. This is a code modification to the distribution connection standard. The change enables grid-connected assets to operate in isolation when the grid is being restored after blackouts.
The Standard Application Form (SAF) v11 for EREC G99 connections updates the formal document used to apply for connecting power generating modules exceeding 16A per phase to distribution networks. The form covers solar, wind, battery storage, and other generation technologies connecting under G99 requirements. This appears to be a routine version update to existing connection application procedures.
Distribution network operators assess whether to create explanatory guidance supporting Engineering Recommendation P28 Issue 2, which sets technical standards for distributed generation connections. The proposed Engineering Report would provide additional technical application guidance but would not change P28 itself. No timeline or specific technical areas are identified.
CMP470 proposes introducing a commitment fee floor for all technologies that are oversubscribed relative to Clean Power 2030 capacity targets. The modification targets generation developers with high impact and transmission owners with medium impact. It is proceeding through urgent governance route to workgroup stage.
NESO publishes its codes administration landing page, consolidating information on the four electricity transmission codes it manages: CUSC, Grid Code, STC, and SQSS. The page includes a monthly modification tracker published on the 7th of each month and search functionality for current and concluded modifications. This serves as a reference portal for industry participants engaging with code modification processes.
NESO expands its Demand Flexibility Service to allow participants to be rewarded for increasing electricity consumption during periods of excess supply, alongside existing rewards for demand reduction. The service threshold drops from 1MW to 0.1MW, opening participation to smaller suppliers and businesses. Over 2.46 million businesses and consumers have already signed up.
NESO has launched a consumer mobile app that shows carbon intensity of the electricity grid in real-time, allowing users to schedule energy usage during periods of low carbon generation. The app, developed with WWF and Oxford University, can link to smart devices for automated load shifting. NESO is seeking user feedback to improve a new version of the app.
NESO establishes a programme to track and enable demand-side flexibility participation in its balancing services markets, targeting 10-12 GW of demand flexibility by 2030. The programme includes quarterly reporting of participation levels and a Routes to Market Review to remove barriers for demand-side participants. Data relies on self-reported confirmations from asset owners, with NESO encouraging non-respondents to contact them for comprehensive representation.
NESO publishes quarterly updates on its review to remove barriers preventing demand-side flexibility from participating in system operator markets. The review has completed three stages and now publishes quarterly progress reports tracking barrier removal, with a data dashboard monitoring participation volumes. The programme follows NESO's Clean Power 2030 advice identifying demand-side flexibility as essential for operating a decarbonised system.
NESO has decided not to implement a short-term day-ahead reactive power market after cost-benefit analysis showed no consumer benefits under current conditions. The decision will be reviewed in 2027 at the earliest. NESO continues work on Commercial Services Agreements for additional reactive power capability, with transmission-connected solutions progressing faster than distribution-connected ones.
NESO published a webinar update on its short-term (D-1) stability market assessment, concluding there are no consumer benefits to implementing a full short-term stability power market under current conditions. The assessment follows NESO's 2023 Markets Roadmap commitment to procure stability services across long-term (Y-4), mid-term (Y-1), and short-term (D-1) timescales. NESO's cost-benefit analysis found insufficient justification for the D-1 market implementation.
Code modification GSR038 proposed to remove the requirement for two offshore AC transformers at grid entry points of 90MW or more has been withdrawn. The modification aimed to assess restrictions in Grid Code Clause 7.7.1.1 that effectively mandated dual transformer configurations. NESO classified it as having high impact on offshore transmission owners and generators.
Code modification CM0106 proposes to restore requirements for Transmission Owners to submit interface substation compliance information to NESO, addressing a gap created when NESO separated from National Grid. Previously, TOs and DNOs agreed Access Groups and Periods, with DNOs sharing schedules at week 24 to allow TOs to determine site compliance. The modification is under standard governance with workgroup assessment.
The BSC Panel is consulting on code changes to establish governance arrangements for the Smart Data Repository, scheduled to launch later in 2026. The repository will centralise smart meter data to support market operations and grid management. This is implementation detail for an already-decided policy rather than a new structural reform.
DESNZ and Ofgem propose mandatory baseline cyber security requirements for all 1,400+ Ofgem licensees through licence conditions, using Cyber Essentials certification as the starting point. The proposal also expands Network and Information Systems (NIS) Regulations to capture more distributed energy operators deemed critical to system stability. NESO will provide independent advice on which services and operators should fall under the enhanced NIS framework.
Ofgem and DESNZ propose baseline cyber security requirements for all energy licensees, plus expanded Network and Information System Regulations coverage. The consultation seeks to standardise cyber resilience across downstream gas and electricity sectors through mandatory minimum requirements. No specific thresholds, costs, or implementation dates are provided.
Ofgem sets out five options for redesigning transmission network charges to steer investment towards Strategic Spatial Energy Plan locations, ranging from tweaking existing TNUoS to auctioning connection capacity by zone. Charges would apply to new generators, demand, and storage. Responses by 26 May 2026, reforms targeted for 2029.
Ofgem proposes adapting the energy price cap wholesale allowance methodology to accommodate Market Wide Half-Hourly Settlement (MHHS), which changes how suppliers are settled when purchasing electricity to match customer demand. The consultation seeks views on setting wholesale allowances that track efficient costs, accounting for cost differences across customer groups, and developing time-of-use price cap variants. Responses are due by 5 May 2026.
Ofgem approves NESO's amendments to balancing terms and conditions to incorporate service documentation for the Demand Flexibility Service. The changes update Article 18 requirements under electricity balancing guidelines to include DFS parameters within formal balancing arrangements. This represents administrative housekeeping rather than substantive reform of the service itself.
Ofgem approved NESO's request to extend and amend the derogation from Article 6(4) of the Electricity Regulation for its Demand Flexibility Service, a balancing energy product. The derogation allows NESO to operate DFS without full compliance with standard balancing market requirements. The decision was made on 25 March 2026 following NESO's proposal submitted on 30 January 2026.
Government sets strategic framework for expanding interconnection beyond current 10.3GW operational capacity and 7.45GW under development, moving from market-led Cap and Floor regime to planned approach aligned with NESO's Strategic Spatial Energy Plan due autumn 2027. New delivery framework will identify optimal location, capacity and connecting countries for interconnectors and Offshore Hybrid Assets combining cables with wind farms.
Ofgem proposes standardised reporting requirements for network companies to disclose procurement practices, local content, and supplier details for electricity network equipment and services. The consultation closes 10 May 2026 and explores potential adjustments to encourage greater domestic supply chain participation within existing regulatory frameworks. This follows Great Britain's planned network expansion requiring unprecedented equipment procurement.
Ofgem proposes strategic planning-led interconnector development where NESO identifies projects and government sets delivery and financing arrangements. The consultation closes 1 May 2026. This shifts from developer-led merchant models to centrally planned interconnection aligned with wider system needs.
DESNZ publishes an overview of hydrogen heating research, positioning it as a future option with limited role after heat pumps and heat networks lead decarbonisation. The H100 Fife trial supplies hydrogen to 300 homes through a parallel network, funded by SGN and gas network operators with Ofgem approval. Government will consult on hydrogen's heating role after completing its assessment.
DESNZ proposes a bill discount scheme offering households within 500 metres of new transmission infrastructure £250 annually for 10 years, funded by an obligation on all electricity suppliers who will pass costs to all customers via bills. The scheme covers new overhead lines and substations from 2027, with eligible households identified automatically via their MPAN, plus an opt-in route for those on commercial meters or off-grid. Administrative costs are socialised across all billpayers while benefits flow only to those hosting infrastructure.
DESNZ published final reports from its Alternative Energy Markets Innovation Programme, which funded seven projects totalling £11.6m to design and test domestic demand-side flexibility tariffs between 2023-2025. The projects tested Home Energy Management Systems paired with time-of-use tariffs, retrofit programmes with dynamic pricing, and subscription models for smart appliances across various hypothetical future market scenarios.
DESNZ publishes guidance requiring new domestic and non-domestic buildings to be designed with specific spacing and positioning requirements for smart meter installations. Buildings must position electricity and gas meters near the front door, provide minimum 405mm x 405mm clear space for smart electricity meters, and avoid metal obstructions around communications hubs. The guidance is part of the Future Homes and Buildings Standards programme.
Government introduces regulations requiring majority of new homes in England to have solar panels fitted as standard from 2028 under the Future Homes Standard, removes regulatory barriers for plug-in solar panels under 800W to connect via domestic sockets without electrician installation, and launches trial allowing suppliers to offer discounted electricity on windy days in constrained areas instead of paying wind farms to switch off. The Future Homes Standard also mandates low-carbon heating systems like heat pumps in new builds, while plug-in solar will be available in shops within months through retailers like Lidl and Amazon.
Market-Wide Half-Hourly Settlement systems went live in September 2025, with first Wave 1 participants completing qualification and beginning migration of 30 million supply points. The programme transitions from implementation to business-as-usual operation of settlement systems and the Data Integration Platform. Elexon served as Implementation Manager rather than Ofgem leading directly, coordinating industry delivery through working groups and volunteer early adopters.
Government and Ofgem establish a data domain model with four coordinators (NESO, RECCo, Elexon) to standardise energy system digitalisation, replacing the current fragmented initiative-led approach. The framework introduces a digitalisation coordination function and mandates interoperability between Data Sharing Infrastructure (DSI) and Consumer Consent Service (CCS). Implementation begins immediately with interim governance, moving to full coordination function by 2028-29.
Ofgem seeks stakeholder evidence for the third-year assessment of Distribution Network Operators' performance as Distribution System Operators under RIIO-ED2. Responses close 30 April 2026, with the independent panel's assessment following this summer.
Ofgem approved modifications to BUUK's connection charging methodology for gas network connections under Standard Condition 4B of the gas transporter licence. The decision was made within the required 28-day review period following BUUK's submission on 27 February 2026.
NESO published updated Connections Reform methodologies in March 2026, extending the Evidence Submission Window closure beyond July 29, 2025 due to portal issues and query response delays. The methodologies cover the Gate 2 Two-way Queue (G2TWQ) process, including network design criteria, project designation rules, and gate progression requirements.
Smart meter rollout statistics show 41 million smart and advanced meters operating at end-2025, covering 71% of all meters in Great Britain. Installation pace slowed by 5.8% to 2.8 million meters in 2025, with quarterly volumes declining in the second half after increases in Q1-Q2. The programme continues transferring SMETS1 meters to the national communications network to maintain interoperability between suppliers.
DESNZ publishes quarterly statistics on smart meter roll-out, covering domestic and smaller non-domestic installations and operations. Data includes meters installed and operating across Great Britain, with quarterly updates for large suppliers and annual whole-market data. Historical data prior to 2017 available on request.
Ofgem proposes removing distribution network operators' reporting requirements under Standard Licence Condition 31E, transferring responsibility to Elexon as Market Facilitator from April 2027. The modification eliminates DNO obligations to report flexibility service procurement data to Ofgem. Statutory consultation follows in June 2026 with final decision by August 2026.
DESNZ commissioned Lucy Yu to review AI deployment in electricity networks, examining applications across grid planning, operations, and management. The review will map current AI applications, identify deployment barriers, assess system benefits and risks, and provide recommendations by Summer 2026. The scope covers transmission and distribution applications, regulatory landscape, and enabling conditions like data access and testing environments.
Elexon has published draft governance frameworks for Smart Secure Electricity Systems (SSES) and extended the consultation deadline to 31 March 2026. The framework establishes enduring governance arrangements for smart secure electricity systems in Great Britain, including bilateral agreements with cross-references to BSC provisions.
Ofgem is consulting on Early Construction Funding for Scottish Power Transmission's Denny to Wishaw 400kV reinforcement project under the ASTI re-opener mechanism. The consultation closes 15 April 2026 with responses to be submitted to transmission.acceleration@ofgem.gov.uk. This follows SPT's application for accelerated funding to begin construction ahead of the normal RIIO price control cycle.
The Chancellor's Mais Lecture outlines a strategy for investment-led growth through an 'active and strategic state', including energy security measures and industrial policy. Key energy commitments include lifting the onshore wind ban, investing in offshore wind and nuclear (Sizewell C, small modular reactors), and implementing the Fingleton Review to accelerate nuclear deployment. The government claims these measures have reduced gas imports by 17% since 2021 and enabled a £117 average reduction in the energy price cap.
NESO publishes methodology for calculating Net Transfer Capacity (NTC) restrictions on interconnectors and compensating affected capacity holders. The current consultation runs until 17 April 2026, updating commercial arrangements for capacity restrictions. This covers all GB interconnectors and applies to both day-ahead and intraday capacity calculations.
Ofgem proposes demand connections reform structured around 'Curate, Plan and Connect' pillars to address queue viability, project progression delays, and lack of strategic prioritisation. The demand queue has grown substantially with many non-viable projects blocking viable ones from connecting. The reform builds on TMO4+ and involves NESO and network companies in developing prioritisation mechanisms for strategically important projects.
NESO launches a call for input targeting customers with existing transmission-level demand connection agreements and co-located generation-demand sites, seeking project data to address queue management challenges. The initiative follows a 460% surge in demand applications exceeding forecasts, creating connection delays for viable projects. Responses are due by 5pm on 5 December 2025.
NESO published results from its November 2025 Call for Input on demand connections, receiving 243 responses representing over 90GW of demand capability. Data centres dominate at 55% of total capacity (50.8GW), with 81% of all projects willing to accept alternative connection arrangements like phased or non-firm connections for earlier dates. Connection dates span 2027-2035, with 40% of projects seeking pre-2030 energisation.
Government proposes using new statutory powers to accelerate grid connections for strategic demand projects, including data centres and AI Growth Zones, through queue management reforms, capacity reservation, and reallocation mechanisms. The proposals would impose higher financial requirements on data centres to address speculation in the 125GW demand queue, while creating prioritisation systems for government-identified strategic projects. Consultation closes 15 April 2026.
DESNZ publishes annual statistics on MCS-certified domestic battery installations covering April 2025 to March 2026, including capacity and cost data. The MCS database captures installations eligible for various support schemes and provides the primary dataset for tracking behind-the-meter storage deployment. This data informs policy development on distributed storage and network impact assessments.
DESNZ will enable government to prioritise strategically important demand projects (AI data centres, industrial sites) in transmission connection queues while requiring higher financial commitments from developers to tackle speculative applications. The demand connection queue grew 460% in six months to June 2025, creating waits up to 15 years. Ofgem will consult on increased deposits or fees for queue participants who miss milestones.
The Secretary of State published screening decisions on overhead electricity line applications under section 37 of the Electricity Act 1989. These decisions determine whether overhead line projects require full Environmental Impact Assessment or can proceed with a simplified process. No specific applications or decisions are detailed in this collection notice.
Elexon and ElectraLink have signed an agreement establishing a daily API for sharing half-hourly settlement data, required to maintain retail market operations during Market-wide Half-Hourly Settlement (MHHS) implementation. The framework guarantees data access between the settlement body and the retail market data provider. This prevents disruption to supplier switching and other retail processes that depend on ElectraLink's systems.
NESO updates queue management guidance with new milestone calculation methods and evidence requirements for transmission connections. The guidance incorporates recent code changes CMP434 and CMP435 that implement connections reform, establishing eight mandatory milestones that developers must meet or face termination. Projects must now demonstrate progression through planning, land rights, construction planning, financial commitment, and construction initiation phases with specific evidence requirements and timelines calculated backwards from completion dates.
Elexon hosted a webinar on 26 February introducing the Smart Secure Electricity Systems (SSES) governance framework and its industry-led arrangements for consumer-led flexibility. This is an explainer session about governance arrangements rather than the framework itself.
NESO publishes BSUoS charging data including fixed tariffs, monthly forecasts, and payment calendars through March 2026. BSUoS charges recover balancing costs and are paid by final demand customers only since April 2023 reforms. Current fixed tariff structure replaced variable charges following CMP308 and CMP361 implementation.
NESO has published updated charging documentation including guidance materials, charging statements, and policy developments on its website. The documentation includes guidance on TNUoS, BSUoS, connection charges, and AAHEDC, plus current charging statements and methodology policy decisions. This consolidates existing materials rather than introducing new charges or methodologies.
NESO publishes detailed guidance for its Enduring Auction Capability (EAC) platform, which conducts co-optimised day-ahead procurement for frequency response and reserve services. The platform uses N-SIDE's algorithm to clear Dynamic Response, Quick Reserve, and Balancing Reserve services together at 14:00 daily, with Slow Reserve to be added in March 2026. Results are published via data portal with monthly archiving for sell orders and annual archiving for other datasets.
Elexon's CFO highlights that non-commodity costs rather than wholesale prices now drive consumer bill pressure, with Market-wide Half-Hourly Settlement progressing from 3 million to target 30 million meters. Smart meter penetration has reached 60-70%, enabling time-of-use tariffs and flexibility services.
NESO has issued Gate 2 offers to transmission-connected projects under connections reform, with customers having 90 days to accept or reject offers. Projects that reject Gate 2 offers revert to Gate 1 agreements, triggering security release processes under CUSC Section 18. Technical queries must be submitted within 4 weeks of receiving offers, with transmission operators providing 2-4 week response times.
NESO proposes to remove outdated references in CUSC to three discontinued publications: Seven Year Statement, Offshore Development Information Statement, and Electricity Ten Year Statement. The modification will be presented to the CUSC Panel on 27 March 2026.
NESO proposes removing outdated references to defunct planning documents (Seven Year Statement, Offshore Development Information Statement, Electricity Ten Year Statement) from the Connection and Use of System Code. The proposal will be presented to the CUSC Panel on 27 March 2026. Cross-code impacts affect the System Operator Transmission Owner Code.
NESO has raised a modification to assess whether offshore wind farms of 90MW or more should be required to have two AC transformers at their grid connection point. The current SQSS rule 7.7.1.1 effectively mandates dual transformers for these capacities. The proposal will go to SQSS Panel on 24 March 2026.
NESO has issued the Go-Live Notice for Slow Reserve service, opening the Enduring Auction Capability (EAC) auction on 17 March with the first auction on 31 March 2026. This triggers the end of STOR service at 05:00 on 1 April 2026. Slow Reserve provides frequency management through post-fault energy balancing, requiring units to respond within 15 minutes with minimum 1MW capability.
NESO publishes a list of 35 organisations registered to provide demand flexibility services, split between domestic/micro-business (18 providers) and industrial/commercial (17 providers). The list includes contact details and notes which providers are members of the Flex Assure compliance scheme. Updated February 24, 2025.
NESO introduces a centralised customer support model for transmission-connected projects receiving connection offers under connections reform, replacing individual contract managers with a dedicated team operating to defined service levels. Customers have 90 calendar days to accept offers, with specific processes for queries, changes, and rejections. The new model provides single-route access through a portal system with structured response times for allowable modifications.
NESO publishes the Connection and Use of System Code (CUSC), which sets the contractual framework for connecting to and using the National Electricity Transmission System. The webpage provides access to code documents, modifications process, and panel information for parties seeking to connect to the transmission system.
NESO publishes standard weekly Operational Transparency Forum materials - presentation slides and recordings from system operations discussions. The forum runs every Wednesday at 11am, covering recent operational actions in the Electricity National Control Centre.
NESO launches a call for input on Reformed National Pricing (RNP) proposals to reform dispatch arrangements and electricity market design, with responses due 14 April 2026. The RNP programme aims to strengthen investment signals, improve operational efficiency, and reduce constraint costs within Great Britain's retained single national wholesale market. Government will provide legislation as required for timely delivery.
NESO proposes Grid Code changes to implement 'Regional Restoration Plans' following the previous GC0156 modification, standardising how transmission operators coordinate during system blackout recovery. The proposal affects all transmission system operators, transmission owners, network operators and generators, requiring workgroup development under standard governance. Cross-code impacts extend to STC and DCODE.
A request to review UK retained EU Network Codes to enable streamlining has been submitted to the Uniform Network Code panel. The proposal aims to simplify the complex web of gas market rules inherited from EU membership. This represents early-stage activity to address regulatory burden in gas network operations.
NESO submitted updated Demand Flexibility Service terms to Ofgem on 30 January 2026, with Ofgem decision expected by 30 March. The service transitioned from emergency tool to in-merit margin tool in November 2024, allowing NESO to procure demand reduction alongside other balancing services. Current domestic and business customers can participate through registered providers, earning payments for reducing consumption during called events.
NESO publishes mock auction results for its Enhanced Ancillary Services (EAC) platform, showing weekly test runs of response-reserve procurements ahead of live operations. The dataset includes buy orders, sell orders, results by unit, and summary statistics from mock auctions scheduled for late September 2023. Live EAC auctions will run daily with results published on a separate page.
NESO proposes GSR037 to improve formatting and readability of the System Quality of Supply Standard (SQSS), a technical document governing grid planning standards. The proposal follows standard governance and goes directly to CAC approval. SQSS Panel will review on 24 March 2026.
NESO announces webinars to present its transitional Regional Energy Strategic Plan (tRESP), published 30 January, plus fourth round of RESP Forums across February. The tRESP will inform distribution network operators' plans for ED3 price control covering 2028-33. Over 2,800 people attended the first three forum rounds in 2025.
NESO operates the CUSC Forum, which includes the Transmission Charging Methodologies Forum (TCMF) and CUSC Issues Steering Group (CISG). The forum provides a regular venue for industry to discuss transmission charging methodology developments and general CUSC issues. The next meeting is scheduled for 2 April 2026, with the last held on 5 March 2026.
NESO proposes extending User Commitment Methodology principles from CUSC section 15 to users under Final Sums methodology through STC modification CM093, following the approved CUSC change CMP417. The workgroup process is ongoing with meetings through March 2026. This affects how transmission users commit to infrastructure costs under different charging methodologies.
NESO publishes quarterly TNUoS tariff data across eight categories including transmission demand residual charges, generator tariffs (onshore and offshore), and embedded export tariffs. The dataset provides granular breakdown of network use charges that recover transmission system costs from users. Files are updated quarterly when tariffs are published, with data available via API and CSV download.
NESO publishes planning methodology documents and consultation responses for Strategic Spatial Energy Plan (SSEP), Centralised Strategic Network Plan (CSNP), and transitional network planning. The SSEP draft methodology consultation closed 20 January 2025, with final methodology expected spring 2025 following government and Ofgem approval. CSNP methodology consultation launches Q2 2025, with tCSNP2 methodology submission to Ofgem by 31 March 2025.
NESO publishes comprehensive guidance for its Dynamic Services suite — Dynamic Containment (DC), Dynamic Moderation (DM) and Dynamic Regulation (DR) — which provide frequency response to keep the grid within 50Hz ±1%. The services require response times from 0.5 seconds (DC/DM) to 2 seconds (DR), with delivery duration from 15 minutes (DC) to 60 minutes (DR). Procurement occurs via the EAC platform with results published on the NESO Data Portal.
NESO publishes its C9 statements page, consolidating balancing service procurement guidelines, methodology statements, and consultation documents previously held under the C16 licence condition. The page hosts current versions of five methodology statements (Procurement Guidelines v28, Balancing Principles v26, BSAD v26, ABSVD v20, SMAF v19) effective from September 2025, plus historical versions and consultation records dating back to 2009. A 2026-27 consultation is open until February 6, 2026.
DESNZ proposes comprehensive cost recovery fees for energy infrastructure planning applications to replace current non-cost-reflective charges. The fixed fee model aims to generate revenue for resourcing planning decisions, with annual fee reviews and potential indicative timescales for applications without statutory deadlines. Consultation responses are due by spring 2026 with implementation following.
DESNZ proposes creating a new Load Control Licence regime, making it illegal to control customer electricity loads without Ofgem authorisation from end-2026. The licence covers load controllers and Flexibility Service Providers, with cyber security requirements for the former and consumer protection rules for the latter. A 12-month transition period runs from licence applications opening to enforcement.
CMP466 enables generators to recover costs of providing Electromagnetic Transient (EMT) models required under Grid Code GC0168. The modification follows after CMP456 and addresses the financial burden placed on existing generators, particularly older plant with complex systems. CUSC Panel initially rejected urgency but assigned high priority status on 5 February 2026.
DESNZ proposes mandatory smart functionality for energy smart appliances (ESAs), including minimum requirements for grid stability, cybersecurity, and consumer switching protection. Phase 1 regulations introduce smart mandates for electric heating appliances and consolidate electric vehicle charging point rules into a single ESA framework. Phase 2 regulations, planned for 2027, will add interoperability requirements to prevent consumer lock-in to specific flexibility service providers.
NESO proposes increasing minimum reactive power requirements for full converter technology Power Park Modules operating below maximum active power output through Grid Code modification GC0184. The Grid Code Review Panel rejected the proposal on 13 November 2025, stating it did not identify a clear defect. The proposer is considering next steps.
NESO proposes to align operational criteria for low probability, low impact secured events between England/Wales and Scotland through SQSS modification GSR035. The workgroup phase begins March 2026 following panel approval in February. This affects transmission security standards that determine when networks must be reinforced.
NESO proposes reviewing voltage limits that apply during operational timescales and introducing flexibility around these constraints. The modification affects transmission owners, NESO, distribution networks, generators, and directly connected customers. Cross-code changes to Grid Code and STC may be required.
Ofgem approved CMP463, freezing Specific Onshore Expansion Factors at 2025/26 levels from 1 April 2026. The modification prevents large unexpected increases in these TNUoS charges that would have resulted from the 2026 Price Control. The freeze is temporary, pending a fundamental TNUoS review.
NESO publishes real-time physical notifications data from non-Balancing Mechanism service providers through its Open Balancing Platform system. The platform currently hosts Quick Reserve Service data, with Slow Reserve and Dynamic Response data to be added as those services launch. This provides transparency into how flexibility providers declare their availability to the system operator.
NESO now publishes real-time reserve availability and utilisation prices for non-balancing mechanism services through its Open Balancing Platform. Quick Reserve service data is live, with Slow Reserve data to follow when that service launches. This creates transparency on ancillary service costs and provider behaviour previously hidden from the market.
Ofgem proposes requiring domestic energy suppliers with over 50,000 customers to offer tariffs with standing charges at least £150 below the price cap nil consumption level. The requirement would apply to all payment methods and meter types, with suppliers able to restrict eligibility to consumers using above minimum consumption thresholds (666kWh electricity, 2,836kWh gas annually). Implementation would begin early 2026 with a two-year sunset clause.
DESNZ proposes extending smart meter installation obligations beyond 2025, requiring suppliers to complete domestic rollout by 2030 and improve operational performance. Current annual installation targets end 31 December 2025. Suppliers would submit annual deployment plans and face new obligations on meter functionality.
DESNZ consults on bill discount scheme design for residents living near new or significantly upgraded transmission infrastructure. The scheme would provide direct bill reductions to households in defined proximity to transmission projects. Consultation closes on a date not specified in the provided content.
NESO proposes to socialise transmission connection asset costs and cap customer contributions through CUSC modification CMP460. The modification seeks to create more certain charging by reducing direct customer charges for connection infrastructure. Workgroup consultation runs 28 January to 18 February 2026.
DESNZ proposes to transfer governance of technical and security standards for smart energy devices from government to industry-led arrangements under Elexon's management through Balancing and Settlement Code modifications. The governance would manage requirements for domestic EV chargers, heat pumps, and other flexibility devices. Costs would be recovered through BSC levies on industry participants.
Ofgem reviews how energy system costs are allocated and recovered across electricity and gas consumers. Examines whether the current split of network, policy, and balancing costs between fuels and customer groups is fit for purpose.
Ofgem opens review of energy system cost allocation and recovery, examining how network, wholesale, policy, and retail costs are recovered from domestic and non-domestic consumers. The review considers alternatives to current standing charge structure, including block tariffs, time-of-use charging, location-based pricing, and ability-to-pay options. Consultation closes 24 September 2025 with policy options expected end-2025.
DESNZ consults on creating a consumer engagement framework to increase uptake of demand-side flexibility through information campaigns and coordination between existing organisations. The consultation explores government's role in promoting voluntary demand shifting but proposes no specific mechanisms, charges, or market changes. This is a consultation about whether to consult further on detailed proposals.
DESNZ launches consultation on improving visibility of distributed energy assets including EV chargers, solar panels, heat pumps and batteries through better data collection from installation to operation. The consultation seeks views on strategic data flows and options for mandating asset registration. No specific mechanisms or costs are proposed at this stage.
UNC modification 0886V amends the Code Cut-Off Date from a fixed annual date to a rolling period mechanism for gas network code changes. The modification has been implemented following Authority direction. This affects Independent Gas Transporters (IGTs) alongside the main gas distribution networks.
NESO is revising the Obligatory Reactive Power Service (ORPS) compensation methodology through CUSC modification CMP457, moving away from gas price-based rates. The Standard Governance workgroup process begins after 13 November 2025, following unanimous CUSC Panel approval in October. Current ORPS costs reflect gas prices despite the shift to low-carbon generation requiring grid stability services.
NESO introduces Grid Code modification GC0183 requiring generators and interconnectors to notify their intended availability during severe space weather events. Ofgem approved the modification on 20 November 2025 with implementation on 4 December. The modification proceeded through urgent procedures due to national security implications.
DESNZ consults on streamlining land rights and consents processes for electricity network infrastructure to enable faster deployment. The consultation follows a 2022 call for evidence and targets reducing costs, complexity and delays that currently hinder network projects. Minor changes to existing infrastructure will be fast-tracked to free resources for complex cases requiring detailed scrutiny.
NESO proposes standardising power flow metering polarity across all parties sending data to the system operator. The modification creates a unified diagram and description format for how power flow direction is reported. Workgroups begin March 2026 with transmission system owners, interconnectors and network operators most affected.
Grid Code modification GC0181 proposes to improve system incident reporting procedures to make technical requirement monitoring more effective. The modification follows standard governance with workgroups, currently seeking further development work before Panel determination. Low impact identified on Transmission System Owners.
CMP456 creates a cost recovery mechanism for generators required to produce Electro Magnetic Transient (EMT) models under GC0168, shifting the financial burden from plant operators to system users. The modification addresses 'significant' costs imposed on older generators with multiple discrete systems who gain no direct benefit from producing these grid stability models. Authority rejected urgent processing in December 2024, with the CUSC Panel designating this high priority in January 2025.
DESNZ consults on mandating solar canopies on new outdoor car parks above an unspecified size threshold, covering public and private sites. The consultation also seeks views on expanding permitted development rights for EV charging infrastructure to reduce planning barriers. The solar mandate would apply to new car parks, with exploration of retrofitting existing facilities.
DESNZ and Ofgem propose standard licence conditions for code managers and update CMA appeals process following Energy Act 2023. Code managers will replace industry panels with licensed entities that set budgets, recommend modifications to Ofgem, and align codes with Ofgem's Strategic Direction Statement. Appeals trigger when Ofgem disagrees with code manager recommendations, replacing current panel-based triggers.
DESNZ and Ofgem propose licence conditions for code managers and an appeals process to the Competition and Markets Authority for code modification decisions. The consultation follows 2024 regulations that enable Ofgem to select code managers. Appeals would allow industry parties to challenge Ofgem's decisions on code modifications through the CMA.
CMP453 proposes to charge BSUoS on net rather than gross flows for BSC Trading Units, meaning customers who export more than they import would not pay system balancing costs. The CUSC Panel recommended the change by majority on 31 October 2025, with the Final Modification Report sent to Ofgem on 11 November 2025. The modification follows Standard Governance through a Workgroup process.
DESNZ seeks technical evidence on hydrogen-to-power projects that can deploy by 2030 without large-scale hydrogen infrastructure. The consultation targets developers with existing H2P deployment plans. No policy changes or funding commitments are proposed — this is information gathering for future policy development.
GC0178 seeks to specify limits on temporary overvoltage events and clarify generator obligations during such events. The modification is proceeding through Standard Governance and has been paused to allow appointment of a consultant to scope the work. High impact parties include generators, transmission owners, and interconnectors.
NESO proposes removing Balancing Codes 4 and 5 from the Grid Code, which cover TERRE cross-border balancing processes that became obsolete after Brexit. The modification eliminates administrative complexity from terminated EU market coupling arrangements. Final decision expected March 2026.
DESNZ proposes a Smart Data scheme allowing customers to share energy consumption data with authorised third parties for tariff comparison and personalised services. The consultation seeks views on scope, governance, and implementation design. No specific timeline or regulatory framework is outlined.
NESO proposes Grid Code changes to replace Mandatory Frequency Response (MFR) with a new Real-time Dynamic Regulation service from 2026/27. The two products will run in parallel until 2029 before MFR is phased out. The Panel rejected the initial proposal in March 2026 for lacking clarity on defect and scope.
DESNZ launches a review of Ofgem's role and powers, citing consumer protection concerns and the need for higher standards in energy markets. The review will examine the regulator's functions and delivery mechanisms. No specific timeline or scope limitations are provided.
NESO releases a new dataset calculating skip rates per 30-minute period using methodology developed with LCP Delta. The data shows skip rates following each stage of exclusions as set out in their published methodology. The dataset is accompanied by an online dashboard for market participants.
DESNZ proposes changes to Capacity Market rules to improve demand side response (DSR) participation and delivery assurance. The consultation covers DSR technology categorisation and testing processes. The proposals aim to better integrate consumer-led flexibility within existing capacity procurement.
Ofgem consults on draft guidance for AI deployment across energy sector operations, covering safety, security, fairness and sustainability criteria. The guidance aims to streamline regulatory compliance by mapping AI use cases to existing regulatory frameworks rather than creating new rules. Consultation runs until spring 2025 with regulatory laboratory sessions in February.
NESO formalises a Demand Control Rotation Protocol allowing rolling blackouts for 3-24 hours during supply shortfalls, modifying Grid Code OC6. The modification affects Distribution Network Operators, NESO, and consumers, with cross-code impacts on the Distribution Code. Panel recommendation has been deferred to address Load Lock definition issues with the Energy Network Association.
CMP445 proposes to pro-rate first-year TNUoS charges for generators from their charging date rather than charging the full annual amount upfront. The modification was denied urgent treatment by the Authority in December 2024 and is proceeding through standard governance, with workgroup consultation closing 22 August 2025. The CUSC Panel placed this high on their prioritisation stack in March 2025.
DESNZ proposes reforms to Scotland's electricity infrastructure consenting under the Electricity Act 1989, targeting projects over 50MW onshore and 1MW offshore within 12 nautical miles. The consultation seeks to modernise consent processes and strengthen community involvement requirements. Both UK and Scottish governments agree that removing inefficiencies from the 1989 Act is the primary route to accelerating deployment for Clean Power 2030.
CMP442 allows generators to fix their TNUoS charges against NESO's forecasted tariffs, converting variable transmission charges into predictable costs. The modification follows standard governance through workgroup process, with first workgroup meeting planned for 16 December 2024. CUSC Panel initially prioritised this as high but downgraded to medium priority in February 2025 following Ofgem's transmission charging modification prioritisation guidance.
Ofgem launched a consultation on strengthening ring fence rules that protect network companies from financial risks of their parent groups, with responses due 11 November 2024. The review targets complex corporate structures where private equity owners use intermediate companies to raise debt that could drain the regulated entity. Three options range from maintaining current arrangements to requiring reserve funds and prohibiting risky activities like whole business securitisations.
Ofgem proposes reducing domestic standing charges by £20-£100 annually by moving supplier operating costs to unit rates, while exploring tariff diversification options. The consultation seeks views on rebalancing the £135 annual operating cost allocation between fixed daily charges and consumption-based rates. Responses close September 20, with potential implementation April 2025.
CUSC modification CMP440 removes the zero price floor from demand TNUoS locational tariffs, reintroducing negative prices as investment signals. Negative tariffs apply over extended consumption measurement periods to prevent gaming. Code Administration Consultation runs 9 February to 3 March 2026.
Ofgem finalises guidance requiring NESO to produce strategic 'Future Energy Pathways' instead of illustrative scenarios, with pathways showing what must happen to meet net zero by 2050. The guidance mandates whole-system modelling including gas constraints, network limitations in the short term, and granular regional data. NESO must publish major pathways every three years to inform the Centralised Strategic Network Plan, with methodology subject to Ofgem approval.
Grid Code modification GC0173 aligns GB connection conditions with European standards and clarifies thermal storage technology data requirements in the Planning Code. The modification follows standard governance with a joint Grid Code/Distribution Code workgroup, receiving four consultation responses. Final modification report was submitted to the Authority in December 2025.
Ofgem reviews operating cost allowances in the price cap, covering core costs, debt-related costs, smart metering costs and industry charges. The review uses 2022-2023 supplier cost data to replace 2017 baselines, with decisions expected by February 2025 for April implementation. Operating costs make up 15-20% of typical bills and vary significantly by payment method.
NESO proposes requiring Transmission Owners to provide detailed Electromagnetic Transient (EMT) and Root Mean Square (RMS) models for grid stability analysis as inverter-based resources replace synchronous generation. The modification addresses control interaction risks and oscillation threats from the changing power system characteristics. Workgroups are paused pending approval of related CUSC modification GC0168.
DESNZ consults on technical and regulatory frameworks to enable flexibility services from domestic devices like EV chargers and heat pumps through the Smart Secure Electricity Systems Programme. The programme aims to unlock demand-side flexibility to support grid balancing and decarbonisation. This represents implementation planning for already-announced flexibility policies rather than new market design.
OpTIC replaces the Transport component of TNUoS with an economic market model that creates transmission charges based on assumed optimal network investment in a zonal market structure. The proposal aims to charge generators and suppliers as if they operated in a zonal wholesale market rather than the current uniform pricing system. Workgroup activity starts Spring 2025 after the CUSC Panel prioritised it as Medium.
Ofgem consults on modifying licence conditions for Green Generation Energy Networks Cymru Limited, removing standard distribution conditions and replacing them with a new Section BA covering charging arrangements, credit rating, indebtedness, and bad debt claims. The consultation closed on 7 May 2024 after a 28-day period. This appears to be a routine licensing modification for a specific entity rather than a sector-wide reform.
Ofgem requires suppliers to provide formal audit assurance on customer data submitted for the nil consumption price cap levelisation reconciliation, which launched April 1st 2024. Suppliers must demonstrate compliance with the reconciliation mechanism through independent audits of data quality and process adherence. A follow-up letter will specify submission locations and deadlines.
Ofgem grants consent for DCC to participate in additional fuel poverty research projects and disclose smart meter system data to three organisations building on previous MEDApps competition work. This allows access to confidential information that would otherwise be prohibited under DCC's licence conditions. The consent extends DCC's authorised activities beyond core smart meter communications functions.
Ofgem publishes modified gas transmission and distribution reporting requirements (RIGs, RRPs, PCFM Guidance) for RIIO-2 Year 3, clarifying regulatory reporting obligations for gas network licensees. The modifications took effect from 4 April 2023 and apply to 2023-24 regulatory year submissions. Electricity transmission modifications will be published separately.
Ofgem launched a call for input on AI use in the energy sector, seeking views on how AI should be deployed responsibly to encourage innovation while managing risks. The consultation closed on 17 May 2024 and forms part of Ofgem's response to government AI regulatory principles. This represents regulatory guidance development rather than rule-making.
Ofgem summarises stakeholder responses to its proposal for a Future Regulation Sandbox (FRS), a new policy instrument to test regulatory changes before implementation. The FRS would complement existing innovation tools including the Energy Regulation Sandbox, Fast Frank Feedback, and Strategic Innovation Fund. This is not a decision document but sets out next steps based on feedback received.
Ofgem launches a call for input on AI use in the energy sector, proposing regulatory guidance and collaboration frameworks rather than new rules. The regulator concludes existing regulation is adequate to capture AI use but wants to produce risk-based guidance tools. Responses close after an unspecified consultation period.
Ofgem finalises its approach to assessing energy network mergers under the special regime created by the Energy Act 2023. The statement of methods sets criteria for evaluating how mergers between same-type network companies (transmission-transmission, distribution-distribution) affect Ofgem's ability to make regulatory comparisons. This applies when network enterprises cease to be distinct through merger.
Ofgem retains the current target for the Major Connections Customer Satisfaction Survey beyond the first regulatory year of RIIO-ED2. The decision extends an existing customer satisfaction metric rather than changing any substantive connection processes or charges. This is a parameter adjustment within the existing regulatory framework.
Ofgem opens stakeholder evidence gathering for independent panel assessment of Distribution Network Operators' performance in RIIO-ED2's first year (April 2023-24). The panel comprises three independent experts and two stakeholder representatives, chaired by Ofgem. Evidence collection closes 10 May 2024, with panel evaluation due summer 2024.
Ofgem sets 2024-25 Interest During Construction rates at 9.48% (pre-tax nominal) for offshore transmission projects and 5.38% (vanilla real-CPIH) for Window 3 interconnectors reaching Final Investment Decision this year. The regulator also switches from RPI to CPIH as the inflation index for calculating IDC rates. These rates compensate developers for borrowing costs during construction phases before assets enter operation.
Ofgem finalises revisions to the Operational Performance Regime (OPR) that financially incentivises the Data Communications Company's performance across system operations, customer engagement, and contract management for smart meters. The regime adjusts weighting methodologies and scoring systems rather than changing fundamental incentive structures. This affects smart meter deployment costs allocated across all energy consumers through supplier charges.
Ofgem and DESNZ propose new licences for the National Energy System Operator (NESO), which will combine electricity system operation and gas system planning functions. NESO will hold both an Electricity System Operator licence and a Gas System Planner licence when designated as the Independent System Operator and Planner (ISOP). The consultation also proposes modifications to transmission, distribution, generation, supply, interconnector, smart meter communication, and gas transporter licences to accommodate NESO's expanded role.
Ofgem approves CMP411, introducing Anticipatory Investment (AI) into Section 14 charging methodologies for offshore transmission. The mechanism allows Offshore Transmission Owners to build grid capacity ahead of confirmed customer demand and recover costs through charges. Decision takes effect immediately on 28 March 2024.
Ofgem consults on whether to grant Wales and West Utilities additional IT capital expenditure allowances under RIIO-2's Non-Operational IT Re-opener mechanism. WWU applied in January 2023 for extra funding beyond their baseline allowance. The consultation closed 29 April 2024.
Ofgem proposes to modify National Grid Electricity Transmission's licence to allocate pension costs for ESO employees transferring to the public-owned National Energy System Operator (NESO). The proposal aims to preserve neutrality for both consumers and National Grid in the cost allocation. Consultation closed on 25 April 2024 with a decision already published.
Ofgem classified transmission assets for the HND South Cluster following National Grid ESO's impact assessment. The decision determines which assets are regulated under different frameworks, affecting cost recovery mechanisms for offshore transmission infrastructure. This follows the established Offshore Transmission Network Review framework for asset classification.
Ofgem consults on its minded-to position for Eastern Green Link 2 project assessment under the Accelerated Strategic Transmission Investment (ASTI) mechanism. EGL2 is a 2GW HVDC transmission link connecting Scotland to England. The consultation closed 27 April 2024 with a decision already published.
Ofgem proposes correcting National Gas Transmission's licence condition 3.14 to include valve interventions in the Asset Health Re-opener and extend the true-up mechanism to cover April 2021-March 2024. The modification addresses drafting that did not reflect the original RIIO-T2 policy decision. Consultation closed 23 April 2024.
Ofgem seeks stakeholder feedback on the Electricity System Operator's performance during the second year of its Business Plan 2 period under RIIO-2 price controls. The consultation closed on 6 May 2024 and received five responses from industry bodies including transmission companies and energy businesses. This assessment feeds into Ofgem's annual evaluation of whether the ESO has met, exceeded, or failed to meet its deliverables across its three core roles.
Ofgem consults on approving £1.8bn early construction funding for eight Scottish Hydro Electric Transmission projects under the Accelerated Strategic Transmission Investment reopener. The projects include major reinforcements across Scotland's transmission network, with funding recovered through transmission charges before construction completion. Decision expected by summer 2024 following consultation closure on 27 April.
Ofgem determined an Income Adjusting Event (IAE) claim from Gwynt y Mor OFTO plc following notices submitted in June 2022 and March 2023. The determination addresses cost adjustments for the offshore transmission operator under its regulated revenue framework. This is a routine regulatory process for managing unexpected costs within the OFTO price control.
Ofgem approves BSC Modification P451, updating Black Start provisions and compensation arrangements in the Balancing and Settlement Code. The modification changes how backup power restoration services are procured and paid for when the grid fails. This is a technical update to existing emergency procedures rather than a structural reform.
Ofgem has directed the ESO to update its licence statements under Standard Condition C16, following the ESO's annual review submission. The updated documents take effect from 1 April 2024. This is routine annual compliance with existing licence obligations.
Ofgem has summarised responses to its October 2023 open letter on regulating independent distribution network operators (IDNOs) and set out priorities for reviewing these arrangements. The document packages stakeholder feedback into themes and establishes the regulator's agenda for potential reforms to IDNO regulation. This follows concerns about IDNO operating standards and customer service compared to traditional distribution network operators.
Ofgem announces its prioritisation of transmission network charging reforms for 2024, responding to increased industry code modification proposals and urgency requests. The regulator will focus on specific reforms but does not detail which modifications take priority or the criteria used for selection. This represents process management rather than substantive charging reform.
Ofgem rejected DCC's appeal against REC Technical Expert Panel's approval of R0093, which increases Central Switching Service maximum demand volumes during the MHHS migration period. The decision upholds the TEP's original approval, allowing R0093 to proceed to implementation. This affects data processing capacity during the transition to half-hourly settlement.
Ofgem consults on its minded-to position for Eastern Green Link 1 under the new Accelerated Strategic Transmission Investment (ASTI) mechanism. EGL1 is the first project assessed under ASTI, which allows pre-construction spending on strategic transmission projects before full needs case approval. The consultation closed on 18 April 2024 with a decision now made.
Ofgem announces the repayment of excess funds collected during the Offshore Transmission Tender Round 6 (TR6) aggregation exercise. The authority has decided how to return overpayments made by offshore wind developers for transmission assets. This is an administrative outcome following the TR6 procurement process.
Ofgem published a summary of stakeholder responses to its September 2023 letter on transmission charging reform. The document collates non-confidential feedback on potential changes to TNUoS and other network charges. This is implementation detail for a consultation process, not new policy proposals.
Ofgem approved UNC0856, enabling trials for demand side response from non-daily metered gas customers. The modification allows gas suppliers and aggregators to test mechanisms for reducing gas demand during peak periods without requiring smart meters. These trials will establish whether existing settlement processes can accommodate demand flexibility from smaller commercial and domestic gas customers.
Ofgem has approved CMP427, introducing a landowner Letter of Authority requirement for new onshore transmission connection applications under the Connection and Use of System Code (CUSC). The change takes effect from 28 March 2024. This adds a documentation requirement to the application process rather than changing substantive connection terms or costs.
Ofgem approved a Grid Code modification requiring interconnectors to meet standardised ramping requirements under EU System Operator Guidelines Article 119. The decision implements the Workgroup alternative rather than the original proposal. This codifies technical requirements that interconnectors must already meet under retained EU law.
Ofgem mandates Data Best Practice (DBP) Guidance integration into industry codes, targeting Central System Delivery Bodies, Code Panels, Code Administrators, and licensed entities. The guidance aims to surface, share, and make interoperable data held across the energy sector. Entities handling significant data portions face specific implementation expectations.
Ofgem approves funding for National Gas Transmission's methane emissions reduction and monitoring projects under the RIIO-2 Net Zero Pre-Construction and Small Projects re-opener. The decision implements proposals to manage and reduce methane emissions from the gas transmission network. A direction will be issued to amend National Gas Transmission's RIIO-2 licence.
DESNZ launches second REMA consultation with narrowed options for fundamental electricity market redesign. The consultation runs until May 2024 and follows the first consultation's identification of market failures in current arrangements. This represents the most significant potential reform to GB electricity markets since BETTA, with options including central dispatch, locational pricing, and enhanced market-based coordination.
Ofgem approves version 9 of the Distribution Code Review Panel constitution and rules, updating the governance framework for the body that manages changes to distribution network codes. The decision implements minor administrative updates to panel procedures and membership rules. No substantive changes to code modification processes or market arrangements.
DESNZ proposes licensing regime for energy code managers under the Energy Act 2023, requiring Ofgem approval for organisations managing industry codes like the Grid Code and Connection and Use of System Code. The consultation sets out standard licence conditions and selection processes for code managers, with updated text published 24 April 2024 correcting a question on funding mechanisms. This implements the code governance reform framework established in the Energy Act 2023.
Ofgem decision on an ESO proposal to update terms and conditions for balancing services. Changes the contractual framework under which generators and demand-side providers participate in system balancing.
Ofgem draft determination on NGET's RIIO-2 non-operational IT capex re-opener application. Assesses whether National Grid Electricity Transmission should receive additional funding for IT systems beyond the original RIIO-2 settlement.
Ofgem draft determination on Cadent's RIIO-2 non-operational IT capex re-opener. Assesses additional IT funding for the gas distribution network operator.
GC0169 makes technical corrections to the Grid Code following implementation of EU Connection Codes under modification GC0136. The modification was split into two parts (GC0169 and GC0173) and processed through standard governance with a joint Grid Code/Distribution Code workgroup. Final modification report was sent to Ofgem on 7 October 2024.
Ofgem decision on UNC0859: reintroduction of enhanced pressure service and increased MNEPOR for BBL Company. A gas-specific network code modification affecting the BBL interconnector.
Grid Code modification GC0168 will require certain generators and network operators to provide electromagnetic transient (EMT) models to NESO for analysis of system stability as inverter-based resources displace synchronous generation. The modification follows standard governance through a workgroup process, with high impact on generators, transmission operators, distribution networks, interconnectors and transmission owners. Timeline has been repeatedly delayed, with workgroup report submitted June 2025 but Panel requesting further legal text review.
Ofgem notice on compliance of Dorenell Windfarm Limited with the Transmission Constraint Licence Condition (TCLC). TCLC prevents generators from exploiting transmission constraints to inflate balancing mechanism prices.
Ofgem grants urgency for CMP428, which addresses user commitment liabilities for onshore transmission circuits in the HND (network design). Changes how generators connecting under the HND framework provide financial security for transmission investment.
Ofgem's initial project assessment of Offshore Hybrid Asset pilot projects. OHAs combine offshore wind connections with interconnector functionality, allowing cross-border power flows on the same infrastructure.
Ofgem's initial project assessment for the third cap and floor window for electricity interconnectors. Assesses new interconnector projects seeking the regulated revenue framework that guarantees a minimum return while capping upside.
Ofgem decision on urgency for CMP430, which adjusts TNUoS charging from 2025 to support Market-Wide Half-Hourly Settlement implementation. Changes how transmission charges interact with the move to half-hourly settlement.
Ofgem Authority decision on CMP398 and CMP412, CUSC modifications related to transmission charging methodology. These modifications change how transmission network costs are allocated.
Ofgem publishes the 2023 report on electricity interconnector Use of Revenues. Documents how interconnector operators spent congestion revenues, including on network investment and tariff reduction.
Ofgem statutory consultation proposing to modify Special Conditions of SP Transmission's electricity transmission licence. Changes the regulatory obligations or allowed revenue terms for Scotland's transmission network.
Ofgem decision on three SP Transmission MSIP (Medium Sized Investment Project) applications for 2023. Approves or rejects specific transmission investment projects within the RIIO-2 framework.
BSC P454 removes obligations to provide BMRS data via the legacy TIBCO and High-Grade Service platforms. Reflects the migration of balancing market data to modern delivery channels.
Ofgem direction relating to implementation of a DCUSA change proposal. DCUSA governs the terms of connection and use of distribution networks.
Ofgem policy update on early competition in onshore electricity transmission networks. Progresses the framework for competitively tendering new onshore transmission projects instead of defaulting to incumbent TOs.
Ofgem consultation on amendments to the Major Connections Governance Document. Proposes changes to how large connection projects are managed and governed within the transmission network.
NESO publishes daily forecasts of balancing reserve requirements for its 08:15 auction that procures firm positive and negative reserve from BM units for delivery between 23:00 same day and 23:00 next day. The dataset includes both medium-term approximations and detailed daily forecasts refined with wind and solar data, providing half-hourly volume requirements for each service window. Data is overwritten daily with previous entries archived, and all forecasts published after 27 February are live demand forecasts.
Ofgem decision to reject DCUSA modification proposal DCP392. The rejected change would have altered distribution connection or charging arrangements.
Ofgem consultation on outturn performance metrics for the RIIO-ED2 Distribution System Operator incentive. Assesses how distribution network operators performed against DSO targets for flexibility procurement, data sharing, and network optimisation.
CMP426 proposes changing how TNUoS charges are allocated for transmission circuits classified as 'boundary reinforcement' within NESO's Holistic Network Design. The modification has been prioritised as 'Medium to High' by the CUSC Panel following an Authority open letter on transmission charging prioritisation in January 2025. Workgroup analysis resumed in early 2024 after initial delays.
NESO proposes STC modification CM093 to extend User Commitment Methodology principles from transmission connection charges to Final Sums methodology users, following CUSC modification CMP417. The modification affects NESO and Transmission Owners, proceeding through standard governance with workgroups restarting in May 2025 after extended delays. This is a consequential change to align charging methodologies across different user categories.
CMP423 proposes switching from a demand-weighted to generation-weighted Reference Node for TNUoS charging calculations. The CUSC Panel has recommended approval by majority, with the Final Modification Report sent to Ofgem on 9 December 2025. This changes how transmission charges are calculated and allocated across the network.
NESO publishes daily auction results for balancing services procured through the Enduring Auction Capability platform. The EAC platform now procures response services (Dynamic Containment, Dynamic Moderation, Dynamic Regulation) and reserve services (Balancing Reserve, Quicker Reserve). Historical results remain available through separate portals.
NESO's Grid Code modification GC0164 simplifies Operating Code No.2 to make obligations clearer for grid users. The modification has been under development since October 2023, with workgroup consultations completed and a second code administrator consultation closing March 2026. This is administrative restructuring of existing obligations rather than substantive rule changes.
CMP419 proposes to revise generation transmission charging zones to include offshore wind farms connected under the Holistic Network Design, allowing these generators to pay wider transmission tariffs rather than local rates. The modification has been deprioritised from Medium-High to Low as of September 2025, with workgroup activity stalled since 2024. This follows Authority expectations from previous zoning decisions CMP324 and CMP325.
CMP417 proposes extending the User Commitment Methodology to all grid connection users, replacing the Final Sums methodology for transmission-connected demand, distribution-connected demand, and DNOs. This would standardise security requirements across user groups, with security amounts reflecting actual transmission liabilities rather than fixed sums. The modification affects high-impact parties including NESO, TOs, DNOs, and demand users currently on Final Sums.
CMP414 seeks to implement the workgroup solution from CMP330/CMP374 by updating CUSC transmission charging methodology. Ofgem rejected the initial proposal in July 2024 due to deficiencies, forcing reconvening of workgroups. The modification is now designated high priority with workgroups beginning October 2025.
CMP402 would modify CUSC Section 15 to implement Ofgem's October 2022 anticipatory investment principles for offshore generators connecting to shared transmission networks at different times. The modification has been deprioritised to low priority by the CUSC Panel as of September 2025, with no active workgroup meetings scheduled.
CMP405 proposes to separate TNUoS demand charges into year-round locational signals and peak security signals, charging storage that imports outside Triad periods while rewarding it during other times. The modification has been deprioritised as low priority by CUSC Panel despite proposer requests for urgency, with Ofgem rejecting urgent treatment in January 2025. Panel confirmed low priority status in March and September 2025, effectively stalling progress.
NESO proposes reviewing restrictions on loss of power infeed risk for offshore DC converter outages under SQSS modification GSR030. The modification has been in workgroup since October 2022, with the latest workgroup scheduled for March 2026. The proposal was split in November 2025, with defect 1 becoming separate modification GSR034.
NESO publishes the Net Transfer Capacity values it submits for NemoLink interconnector capacity calculations, showing GB import and export limits in MW per hour. These values restrict maximum flows but final capacity may be lower after combining with French TSO values and physical interconnector capability. Values are only published when NESO applies restrictions.
NESO publishes its intraday transfer limits for the IFA interconnector, showing the MW capacity restrictions it submits to interconnector capacity calculation processes per hourly period. These NESO values combine with connected system operator values and physical capability to determine final interconnector capacity. Values are only published when NESO applies restrictions.
NESO publishes hourly Net Transfer Capacity values for North Sea Link interconnector that restrict maximum GB import and export flows. These values feed into interconnector capacity calculations alongside connected system operator inputs and physical capability constraints. Final capacity may be lower than NESO's submitted values.
NESO publishes its Net Transfer Capacity values for ElecLink interconnector, showing the maximum import and export flows NESO allows in MW per hour. These values feed into capacity calculation processes alongside connected system operator values and interconnector capability to determine final available capacity. Values are only published when NESO applies restrictions.
NESO proposes reviewing demand connection criteria in the transmission network security standards (NETS SQSS) to align with distribution network security standard EREC P2/7. The review covers how embedded generation, demand side response, storage and active network management contribute to demand security. The workgroup process has been running since June 2022 with next meeting scheduled for March 2026.
Ofgem removes BSUoS charges from generators from 1 April 2023, shifting system balancing costs entirely to demand. CfD projects in Allocation Round 4 will have strike prices adjusted downward from that date to reflect the removal of this cost. The change implements code modification CMP308.
NESO publishes 4-day forecasts of Dynamic Containment requirements for frequency response services, using demand, inertia and loss forecasts. The methodology estimates both high and low frequency response volumes needed to secure the largest credible system loss. Actual day-ahead requirements may differ based on real-time optimisation and interconnector flow changes.
LCCC published guidance explaining how BSUoS charge removal would affect CfD Allocation Round 4 strike prices. If Ofgem implements CMP308 to remove BSUoS charges from generation, CfD strike prices would be adjusted downward to maintain generator revenues. The guidance provides worked examples for developers ahead of Ofgem's consultation closing 19 January 2022.
Grid Code modification GC0155 proposes to clarify fault ride through technical requirements for generators connecting to the transmission system. The modification has been in workgroup since February 2022 with multiple timeline extensions, now scheduled for early 2026. A cost-benefit analysis is required and the modification will be split into two parts, with a new modification on temporary over voltage expected in March 2025.
CMP375 proposes changes to how the Expansion Constant and Expansion Factors are calculated in TNUoS charging, affecting how transmission network investment costs are recovered from users. The modification received unanimous Panel support for the Original solution and majority support for WACM2 in January 2024. Ofgem's decision date has slipped repeatedly from September 2024 to February 2025, with the current expected decision date to be confirmed.
NESO publishes constraint breakdown data showing costs and volumes of transmission system actions taken by the ESO. The dataset provides transparency on why specific system actions were taken, with tags that can be retrospectively updated. Data covers transmission network constraints only.
NESO publishes operational metered wind output data by settlement period for Scotland, England and Wales. The data differs from settlement metering used in wind forecasting metrics due to pre-reconciliation timing. This provides real-time generation visibility for system operation.
NESO publishes the TEC register showing which projects hold transmission entry capacity contracts to connect to the grid. From November 2025, the register will add a 'Gate' column distinguishing between Gate 1 and Gate 2 agreements under updated CUSC provisions. The register covers existing connections and the pipeline of future projects seeking transmission access.
NESO publishes a register of interconnector projects holding connection contracts, listing active and future projects with their firm Transmission Entry Capacity (TEC). The register includes import/export capacity figures and contractual definitions under CUSC. From November 2025, the register will add a 'Gate' column distinguishing Gate 1 and Gate 2 agreements under Connections Reform.
NESO publishes data on interconnector trading auctions used to manage grid constraints and energy balancing across six links (IFA1, BritNed, NEMO, IFA2, ElecLink, Viking Link). Trading occurs ad hoc throughout the day with qualified counterparties who hold interconnector capacity and BSC registration. Data includes volumes secured, best price, volume-weighted average price, and clearing price for each requirement.
NESO publishes historic Grid Trade Master Agreement (GTMA) trading data from April 2015, covering trade volumes, prices, and costs. The dataset updates monthly with previous month's data and refreshes daily to capture trades between D-1 06:00 and D 06:00. Post-delivery changes like counterparty defaults may not be retrospectively updated.
NESO publishes System Operating Plans (SOPs) — real-time operational plans produced at demand peaks and troughs that show how the system operator will balance electricity supply and demand. The SOPs reveal expected actions in the balancing mechanism, reserve requirements, interconnector flows, and transmission constraints for each cardinal point throughout the day. This data release makes operational decision-making transparent to market participants who can see NESO's anticipated balancing actions hours ahead of real time.
NESO publishes real-time instruction data for non-BM ancillary services including Fast Reserve, STOR, and RDP dispatch through its ASDP system. Data is published continuously throughout the day once service providers confirm instructions. Monthly files are created only when new instructions are dispatched for these MW services.
CMP344 fixes transmission owner revenue recovery at the start of each price control period rather than allowing annual adjustments. The modification prevents mid-period revenue changes that currently create unpredictable cost shifts between network users. After multiple Ofgem send-backs since 2021, the CUSC Panel recommended implementation in June 2025, with final decision expected from Ofgem.
CMP341 would create a sandbox for parties to trial innovative technologies by being derogated from specific CUSC obligations on a small-scale, time-limited basis. The proposal has been parked at low priority since 2020 and remains stalled with no active work. The CUSC Panel confirmed in February 2025 it will not prioritise this modification.
GC0140 proposes a Grid Code sandbox allowing parties to be exempted from specific Grid Code obligations for small-scale, time-limited trials of innovative technologies and services. The modification has been in a workgroup since 2020 but remains deprioritised, with meetings subject to Panel prioritisation as of February 2022. It follows standard governance procedures and has cross-code implications through CUSC modification CMP341.
Grid Code modification GC0139 expands data exchange requirements between distribution network operators and NESO for system planning. The modification has been under development since 2020, with workgroup consultation closing January 2025 and panel recommendation vote pending workgroup agreement on legal text changes. High impact parties include NESO, transmission owners and distribution network operators.
NESO publishes half-hourly BSUoS charges across three run types (Interim Initial, Settlement Final, Reconciliation Final) with daily updates of actual prices and volume data. A system outage paused billing from 26 April to 27 May 2024, with normal publication resuming 28 May 2024. The data provides visibility into balancing service costs allocated to suppliers and generators.
NESO publishes daily and weekly forecasts of Negative Reserve Active Power Margin (NRAPM), warning when insufficient flexibility exists to balance the system during low demand periods. The forecasts cover 2-14 days ahead daily and 2-52 weeks ahead weekly for both national and Scottish systems. NRAPM warnings indicate risk of Emergency Instructions being issued to generators.
CMP328 would establish a process for triggering distribution impact assessments when transmission connections affect local networks. The modification has been deprioritised to low status by the CUSC Panel as of February 2025, with work suspended indefinitely. The proposal originated in 2019 but has been repeatedly delayed and sent back by Ofgem for revision.
CMP330/CMP374 proposes to allow transmission-connected parties to build their own connection assets longer than 2km, where previously only assets up to 2km could be built contestably. The modification removes the arbitrary 2km length restriction on contestable connection works, requiring only agreement between the transmission owner and connecting party. Decision expected but currently delayed pending resolution of related modifications CMP414 and CM079.
NESO publishes Balancing Services Adjustment Data (BSAD) twice daily, covering balancing actions taken outside the formal balancing mechanism. This data feeds into the Balancing & Settlement Code for imbalance settlement processes. The dataset provides transparency on system operator interventions that sit outside standard market mechanisms.
NESO publishes real-time data on upcoming electricity trades used for system balancing, refreshed every ten minutes. The dataset shows trades scheduled for delivery to meet forecast balancing requirements at minimum cost. Trade details are provisional and subject to confirmation with counterparties.
NESO publishes half-hourly forecasts for embedded wind and solar generation from same-day to 14 days ahead, updated hourly. The dataset covers distributed renewables connected to distribution networks rather than transmission-connected generation. NESO acknowledges missing archived records and is working to restore them.
NESO releases day-ahead constraint flow data showing actual power flows and thermal limits across transmission boundaries. The data captures network conditions at the time of measurement and includes visual network diagrams showing constraint boundaries and flow directions. Published 5 November 2019, this represents operational transparency rather than market mechanism change.
CMP315 proposes to review how the transmission network expansion constant is determined, which directly affects locational TNUoS charges paid by generators and large users. The modification has been in development since 2019, with the final decision now expected by February 2025. The Panel recommended the original solution by majority vote in January 2024.
CMP316 establishes charging methodology for co-located generation sites combining multiple technologies at one power station. The modification has been through extensive industry review since 2019, with Panel unanimously recommending WACM1 for implementation in August 2025. The Second Final Modification Report was submitted to Ofgem on 8 August 2025.
CMP304 seeks to reform the Enhanced Reactive Power Service but has been repeatedly paused since 2018. The modification was de-prioritised while NESO conducted reactive power market feasibility studies, then moved from low to medium priority in February 2026 following completion of those studies and the raising of related modification CMP457.
NESO proposes removing the Enhanced Reactive Power Service (ERPS) from the CUSC, a tendered commercial service that has attracted no bids in 7.5 years and no contracts in 9 years. Ofgem has delayed decision pending alignment with related proposal CMP304. The removal affects balancing service providers but has low industry impact.
GC0117 seeks to harmonise GB power station connection requirements by implementing EU Connection Code obligations within the Grid Code. The modification has been under development since 2018, was sent back by Ofgem in July 2025, and workgroups are now reconsidering DNO feedback on the cost-benefit analysis. The next workgroup meeting is scheduled for March 19, 2026.
CMP288 proposes explicit charging arrangements to recover additional transmission costs when users delay grid connection works or require backfeed arrangements. The modification has been low priority since October 2024, with Panel confirming this status in February 2025. The proposal targets cost recovery from developers who cause transmission owners to undertake works early due to user-initiated delays.
GC0103 proposes harmonising UK electrical standards with EU Connection Codes within the Grid Code, affecting compliance obligations for generators and network operators. The modification has been in development since 2017 but repeatedly stalled due to low prioritisation, with the Panel requiring further work on Applicable Electrical Standards as of February 2026. It impacts transmission owners, generators, and network operators across medium-scale operations.