Ofgem support for new Two Step Offer connections process

National Grid Electricity System Operator request for Two Step Offer connections process

Ofgem has published its letter supporting National Grid Electricity System Operator (NG ESO) and National Grid Electricity Transmission (NGET) in their time-limited ‘two step’ process, commencing on 01 March 2023. This will enable all connection offers and future connection applications to reflect the new Construction Planning Assumptions (CPAs), which will apply an updated, and more realistic assessment of projects in the current queue. A new approach to the modelling of batteries will provide a more accurate assessment of the impact of batteries on the wider system. Our expectation is that for many connecting parties in the queue, the completion dates should be improved, to reflect a reduced level of reinforcement works being required to enable the connections.

We accept the need for this process which should result in tangible improvements to connection dates. However, this does not remove the need for more significant connections reform to be considered. Ofgem will continue to work with NGESO, the GB Transmission Owners and Distribution Network Operators to deliver tangible improvements and reforms to the connections process; resulting in improved connection dates, more accurate connection offers, coupled with greater transparency. We expect improvements and reforms to be delivered at pace, but with appropriate engagement with current and future connecting parties.

Ofgem is fully engaged in the industry-led initiatives, including the Energy Networks Association’s (ENA) Strategic Connection Group and NGESO’s connection reform programme. Separately Ofgem is also considering the range of regulatory reforms which could support progress in this area and will publish an update in due course on our approach and our next steps.