Transition to Connections Reform

Following Ofgem’s decision on 21 August 2024, any new directly connected transmission application starting on and from 2 September 2024, will receive a Transitional Offer (similar to proposed Gate 1 offers as referred to within the Connections Reform Connection and Use of System Code modifications).

This is the first step in preparing for the new Connections Reform process (subject to Ofgem approval of CMP434 / 435). The transitional offer will include a fully detailed Bilateral Connection Agreement and Construction Agreement legal front end. Appendices will not be populated except confirming Connection Entry Capacity and Transmission Entry Capacity and indicative connection location and completion date. As the application will not have been studied, no reinforcement works will be included or associated securities required. 

Should Ofgem approve the implementation of Connections Reform, Transitional projects will have the opportunity to apply for a Gate 2 offer providing they meet the required criteria to receive an updated offer, confirming location and completion date. This will also include a full set of Appendices including Queue Management milestones. If the Gate 2 offer is not signed the customer will remain with a Gate 1 offer. 

You can find further questions and answers about Transitional Arrangements in our Connections FAQ document and by joining our upcoming webinars:

Request to Ofgem letter Ofgem decision letter

Watch our Transitional Arrangements Teach-in covering the offer process and structure

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Following Ofgem’s decision on 15 January, 2025, NESO will introduce a pause in applications, subject to exceptions outlined in Ofgem’s decision letter. This pause aims to facilitate Connections Reform and create a stable platform for the Gate 2 to Whole Queue (G2TWQ) process. The pause in connection applications will provide customer clarity by establishing distinct pauses and deadlines ahead of the new process, supporting a single focus on delivering Connections Reform.

There are three main elements to the pause period as approved by Ofgem:

1. Transitional Offer Process: This applies only to new directly connected demand projects from 29 January 2025 until the point at which Connections Reform is implemented, or when Ofgem states that it is not proceeding with the reforms (whichever happens first). All such applications must be made by March 21, and clock started by 4 April 2025, to be processed by the networks and accepted by customers in time for inclusion in the Gate 2 to Whole Queue process.
2. Pause in Responding to Other Applications: This applies to any other applications received from 29 January 2025 until the point at which Connections Reform is implemented, or Ofgem states that it is not proceeding with the reforms (whichever happens first). This includes both transmission and distribution applications, such as new applications, modification applications (unless they qualify under the exceptions process below), BEGA and BELLA applications, and Project Progressions.
3. Exceptions Process: This allows for the continuation of issuing full offers for certain modification applications. The exceptions process covers modification applications that:
   1. are linked to circumstances where NESO/TO considers that the modification application will not have material impact on the G2TWQ process, or
   2. relate to the safety and security of the network (e.g., asset replacements); or
   3. are delivery-critical modification applications for customers who are connecting before the end of 2026; or
   4. are excepted on a case-by-case basis, against a set criterion determined by NESO and the TOs, which will cover;
      1. possible impact against the overall project programme.
      2. committed spend.
      3. impact on other projects; or
   5. are excepted on a case-by-case basis, where NESO/TO considers that failure to process the modification application at this time could have detrimental impact on the safety and operation of the network.

Agreement variations and Notices required to be triggered by the TOs, including for the purposes of safety and security of the network, will continue throughout the pause period as under BAU.

Please note that customers can continue to apply at distribution level and all six DNOs will continue to provide offers following the receipt of an application. However, DNOs will not send through any applications to NESO for the transmission impact assessment process during the pause period unless they qualify under an exception.

NESO letter to Ofgem requesting pause in connection agreements 

Open letter on the next steps for connections reform 

Ofgem decision letter