Under Ofgem’s proposals DNOs will provide longer term strategic network investment plans to 2050, based on the outputs of the RESPs. However, we also support Ofgem’s intention to use a range of uncertainty mechanisms, including reopeners, to manage in-period uncertainties. The outcome of the Ofgem Review, published in summer 2025, and subsequent delivery steps, will inform the balancing and rebalancing of Ofgem’s duties to support this. We see the Totex Incentive Mechanism as the appropriate tool for this, though we agree it requires suitable reforms https://www.daegu2011.org/research-report-on-chinas-urban-rail-transit-industry-2013-2017/ to mitigate perverse incentives to avoid capital spend. It is important that efficiencies are realised where it is possible for network companies to do so, and the benefits are passed onto consumers whilst not exposing them to undue over expenditure risk.
We agree the price control should ensure network resilience, and we have provided our thoughts to this in recommendation 2. Government agrees that incentives and penalties should drive behaviours that enable investment and growth and incentivise high quality customer service. These objectives should include Ofgem’s net zero and growth duties, as well as strengthening network resilience and delivering high quality customer service, including connection outcomes. Ofgem should base future price controls around a rebalanced set of objectives focused on long term requirements for the distribution network https://gleecus.com/industries/energy/ that deliver wider consumer value, alongside consumer costs.
Given that the latest SPS was published before NESO’s establishment and roles were still in development, references to it were kept at a higher level. Unlooping was highlighted in Ofgem’s ongoing End-to-End Reviewfootnote 23 of the connections obligations and incentives framework as a barrier to domestic LCT deployment. We support Ofgem accelerating no regret activities including off-gas grid reinforcement by empowering DNOs to take a more consistent, holistic and long-term approach to network planning. Government should also set a date for the elimination of looped supplies to inform Ofgem’s approach to delivery and enable distribution network operators to develop a programme for completing the work across multiple price controls. Within these plans, DNOs should be encouraged to examine network upgrade requirements holistically with the Transmission Owners (TOs) and identify areas of the network where transmission upgrades can be done in tandem with distribution. These investment plans will take into consideration multiple inputs including climate resilience targets, asset health, and load and non-load outcomes.
Company
- Ofgem’s recent framework decision on RESPs, which is aligned with this recommendation, sets out expectations that NESO will work with relevant local actors to develop an in-development register of early-stage projects within each region.
- Each Strategic Board will include local democratic and network company representatives, as well as wider cross-sector actors.
- To make this one to remember, Azura Marlin Beach promises its guests barefoot luxury in paradise.
- The government agrees with this recommendation, electricity security of supply and the continued reliability of distribution networks is a priority for government as we transition to Clean Power 2030 and beyond.
- Local decarbonisation targets and strategies should be enabled as far as reasonably possible, where projects are underpinned by credible plans for delivery.
The rights provided under the Electricity Act 1989 and the Gas Act 1986 differ regarding installation of infrastructure in private streets. This can prevent DNOs from providing the electrical capacity required for homeowners and businesses who are transitioning to electric vehicles and heat pumps. The government agrees there is a strong case for addressing the ambiguity in the process for acquiring rights in private streets and will consult on the proposed change later this year. The government will consult this summer on proposed changes to enable a broader range of alterations to overhead lines to be made, particularly where alterations are minor, have minimal visual impact and to not have a significant impact on affected landowners. The government agrees with the Commission that there is a pressing need to reform the Overhead Lines (Exemption) (England and Wales) Regulations 2009.
Electrical Safety
The first element in this package of regulatory measures, including directions and potential licence modifications, was a direction to the MHHS Implementation Manager. MHHS incentivises energy suppliers to offer more products that reward consumer-led flexibility and enables better management of the system as heat and transport are electrified by shifting these loads away from peak times. The government agrees that the timely delivery of the market-wide half-hourly settlement (MHHS) Programme, which Ofgem oversees, without further delay is crucial for delivering more consumer-led flexibility. Once made, an implementation period of up to 20 months will allow industry to update production cycles before the regulatory requirements will be enforced by the end of 2027. Government action in this area will encourage wider consumer trust and adoption of smart heating appliances and support the growth of a competitive and secure consumer-led flexibility market to mitigate energy security and grid stability risks.
