Ofgem Call for Input: Locational Charges and Regulatory Siting Levers

UK Ofgem Publications & Decisions

Published March 26th, 2026

Detected March 26th, 2026

Summary

Ofgem has issued a call for input on potential reforms to transmission network charges to guide investment in electricity distribution and transmission. The consultation seeks views on options for designing locational charges to incentivize investment aligned with long-term system needs, with reforms anticipated by 2029.

View original document View source feed page

What changed

Ofgem is seeking stakeholder views on options for designing locational charges for new electricity transmission and distribution assets. This initiative stems from the government's Review of Electricity Market Arrangements (REMA) and the Reformed National Pricing (RNP) Programme, aiming to guide investment towards locations that meet strategic spatial energy plan (SSEP) objectives. The call for input explores a range of options, from incremental changes to more transformative approaches, and considers specific arrangements for demand, storage, and legacy assets.

Regulated entities, including generators, storage operators, investors, and transmission operators, are invited to submit responses by May 26, 2026. Ofgem also seeks applications for a dedicated Locational Charges Design Group, with a separate expression of interest deadline of April 22, 2026. The goal is to identify a comprehensive set of options before further policy development, with reforms expected to be delivered by 2029.

What to do next

Submit responses to the call for input by May 26, 2026.
Submit expressions of interest for the Locational Charges Design Group by April 22, 2026.

Source document (simplified)

Locational Charges and Regulatory Siting Levers Under Reformed National Pricing

Publication type: Call for input Publication date:

26 March 2026

Closing date: 26 May 2026 Status: Open Topic: Electricity distribution, Electricity transmission Get emails about this page Print this page

Share the page

We are seeking views on our range of options for how a locational charge could be designed to incentivise investment in locations aligned with long-term system needs.

In July 2025, Government concluded the Review of Electricity Market Arrangements (REMA) and launched the Reformed National Pricing (RNP) Programme. A central part of this programme is the reform of locational charges for new assets, to guide investment to locations consistent with the Strategic Spatial Energy Plan (SSEP).

This Call for Input sets out Ofgem’s early thinking on reforms to transmission network charges, and invites views and new proposals from stakeholders. The purpose is to identify a full range of options before further policy development.

The options in the Call for Input range from incremental refinements of current arrangements through to more transformative approaches. We anticipate delivering reforms by 2029.

In addition, it provides some initial considerations for designing locational charges for demand and storage assets, recognising that their operational behaviour and responsiveness to signals may differ from those of generation assets.

We explore the scope of appropriate arrangements for legacy and transitional assets, meaning assets either already operational, or for which investment decisions have been taken before the full implementation of RNP. These assets may benefit from tailored transitional arrangements in order to support predictability, fairness and value for consumers and to maintain investor confidence when any new locational charging regime is introduced.

We look to continue engagement through a dedicated expert working group- the Locational Charges Design Group. In addition to the main Call for Input we invite applications to this working group through an Expression of Interest form.

Who should respond

We welcome responses from a broad range of industry stakeholders involved in the implementation of the SSEP. This includes:

generators
storage operators
trade associations
investors
transmission operators
consumer group representatives

How to respond

Please email your response to the Call for Input and/or the Expression of Interest for the Locational Charges Design Group to RNPchargingreform@ofgem.gov.uk.

Expression of interest

If you are interested in joining our Locational Charges Design Group, please submit your response by 5pm on Wednesday 22 April.

Call for input

Please submit your responses to the call for input by 5pm on Tuesday 26 May.

Questions are listed at the end of the Call for Input document, and please follow the ‘how to register’ section of the working group Expression of Interest letter.