Transition to Connections Reform
We have introduced two initiatives to manage the increasing number of contracts and to bridge the gap between the current connections offer process and the upcoming Connections Reform (CMP434/435).
Transitional Offers: This initiative aims to ensure a smooth transition for new applications directly connected to the transmission network. It was approved by Ofgem on August 21, 2024.
A pause in Connection Applications: This was approved by Ofgem on January 15, 2025. This focuses on creating a stable platform for the Gate 2 to Whole Queue process. It excludes new directly connected demand applications and specific exceptions.
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
| NESO Letter to Ofgem | Next Steps Letter |
| Ofgem Decision Letter | FAQ Document |
| Watch the Webinar | View the Slides |
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:
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.
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.
Exceptions Process: This allows for the continuation of issuing full offers for certain modification applications. The exceptions process covers modification applications that:
a. are linked to circumstances where NESO/TO considers that the modification application will not have material impact on the G2TWQ process (for example, this may include Modification Applications that request a delay to a customer’s existing Connection Date providing it remains within the same Clean Power 2030 pathway); or
b. relate to the safety and security of the network (e.g., asset replacements); or
c. are delivery-critical modification applications for customers who are connecting before the end of 2026; or
d. are excepted on a case-by-case basis, against set criteria determined by NESO and the TOs. The criteria will cover:
- possible impact against the TO's overall project programme. This includes impacts to the ability of the TO to deliver transmission works required to connect the project and the ability to invest in network development economically and efficiently; or
- committed spend. This includes impacts to the TO's committed spend to deliver required transmission works, which may include procurement, manufacturing, and construction of onshore transmission assets; or
- impact on other projects. This includes where the TO assess that accepting or not accepting the modification application would have a material impact on other projects.
- The driving rationale of criteria (d) is to ensure TOs can continue making commitments to progress investments and procurement spend necessary to deliver relevant transmission works to connect projects, in an economic and efficient manner as per licence obligations. If such projects were to make changes via a Mod App that might impact TO spend or investment schedules, TOs would need to consider and effect these changes to ensure investments are made economically and efficiently.
For instance, a project may choose to delay its completion date or reduce its capacity such that it may no longer be efficient for the TO to pursue its original procurement schedule. In such situations, TOs would need to progress the Mod App and amend procurement schedules accordingly. It may not be possible to specify quantitative thresholds for these impacts under criteria (d) given this is subject to supply chain and other considerations, however TOs will be transparent and document the utilisation of all exceptions criteria during the pause period.
- e. or 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.