Connections reform: our minded-to decisions

Blog
Jack Presley Abbott
Jack Presley Abbott
Deputy Director – System Planning and Connections
Dyddiad cyhoeddi
Sector diwydiant
Distribution Network
Transmission Network

There is a lot to update on since our last blog in early January, where we reflected on all the progress made in 2024.  

Most significantly, on 14 February we published a consultation on our minded-to decision (in other words, a decision we think we will take) to approve the package of connection reforms (referred to as TMO4+). We published a minded-to position in order to invite stakeholder views on the full package of reforms seen altogether, alongside the separate statutory consultation in relation to proposed licence changes. We also published our draft Impact Assessment, which helped inform our minded-to position, at the same time.  

Those two consultations closed on 14 March and we are now working our way through the responses.  

Our Connections Delivery Board has also met twice this year, once in January and once in February. As ever, the minutes of those meetings will be made available on the ENA website. The discussions at the meetings generally centred around the issues discussed below. 

Minded-to decisions on reform proposals

We have been clear for some time that significant process reform is needed urgently to deliver the right connections quickly, where we need them.  

Taken altogether, we think that the package of reforms will provide the connections that are ready to meet Great Britain’s (England, Scotland and Wales) Clean Power 2030 needs. The reforms should achieve this by:  

  • giving networks a clearer signal of what they need to build to connect these projects 
  • giving developers and investors increased confidence that their projects will connect quickly 

Thinking about it another way, the reforms mean that the projects and connections build specified in the bottom-up connections process across both transmission and distribution are aligned with the top-down strategic energy and network plans (starting with Clean Power 2030), which lay out the energy mix that Great Britain requires to reduce carbon emissions and reach net zero. 

Consumers will ultimately benefit. As well as faster realisation of clean power and net zero, we expect to see cheaper electricity generation and reduced system costs flowing through to bills. Consumers will also experience greater protection against system shocks including gas price spikes. 

Therefore, we consider the proposals are necessary and proportionate to address the issues that we are clear need fixing. We recognise that we cannot rule out the risk of legal challenge, which could delay implementation and would divert Ofgem resource away from other connections policy reform work. 

We are listening to concerns raised on some of the details. We continue to work through them with government and NESO to ensure we arrive at the best outcome, noting the need to give investors clarity quickly and to ensure we can achieve the benefits in a timely manner. 

Finally, to be clear, taking this decision would mean that Distribution Network Operators (at distribution level) and NESO (at transmission) have a regulatory requirement to follow the new connections process, including revisiting existing connection agreements.  

We look forward to informing stakeholders of our final decisions over the coming weeks.  

Planning and Infrastructure Bill

Last week the government introduced the Planning and Infrastructure Bill. Within the Bill are changes proposed to explicitly link the connections process with strategic plans, and give support to the introduction of connection reforms already underway in order to ensure they deliver the intended benefits in full. This follows the government’s clear statement last year of their willingness to legislate in order to provide certainty to all parties on the direction of travel for connections.  

The existing regulatory framework allows connection reforms to be implemented lawfully and effectively. However we welcome the government’s intent to support connections reform in this way. It highlights that these are fundamentally needed changes that both ourselves and government clearly agree need implemented.  

Pause in connection applications

In order to ensure a smooth transition towards the possible new connection arrangements, we agreed that NESO should pause accepting new applications for projects seeking to connect at transmission (with some exceptions). This pause has been in place since 29 January 2025 for generation projects, with demand projects subject to a transitional offer approach. Applications can still be made for distribution connecting projects, though Distribution Network Operators are not passing them onto NESO for transmission assessment.  

These arrangements will be in place until Ofgem give further notice.  

Code modifications

We continue to monitor with interest two additional code modifications raised by NESO which are progressing along urgent timelines: 

  1. CMP446 – this seeks to increase the capacity threshold above which a project connecting at distribution must be assessed for its impact on the transmission system. If technically feasible, increasing this threshold will allow more distribution projects, including local and community energy projects, to progress without relying on potentially expensive transmission works. 
  2. CMP448 – this seeks to introduce a “Progression Commitment Fee” that qualifying projects must meet to remain in the connections queue. The objective is to better ensure projects are committed to ultimately connect, or free up space sooner, to allow other projects to progress. 

We recognise the potential value and importance to the connections process of both modifications. We look forward to seeing the proposals developed in full through the working groups, and to the proposals coming to us for decision in due course. 

End to end review

Our consultation on the end to end review of connections incentives and obligations closed in mid February. This critical review, which we see as complementary to connection reforms, is all about ensuring that customers connecting to the grid receive a high standard of service.  

We are now in the early stages of working through the responses we received. We greatly appreciate the level of engagement shown by industry and welcome the significant volume of responses. We expect to move full steam ahead with work on the review once we have published our final decisions on connection reforms over the coming weeks. We look forward to working with stakeholders on the review, and will provide an update on next steps in due course.  

Future of the Connections Delivery Board

Finally, we had a good discussion at the board meeting in January around how we best use the Connections Delivery Board, once we have published our final decisions on connections reform. There is broad recognition of the value of this established group of industry experts and thought leaders continuing to meet on a regular basis to work through connections issues. We will give further thought to how the group can best add value going forward, complementing the work also taking place through the NESO-led implementation hub.  

Next steps

We are moving towards the end of what has been a significant effort to bring much needed reforms to the connections process. As ever we appreciate the engagement of industry in helping us work through this shared problem.