Second Preliminary Strategic Direction Statement for Energy Industry Codes
Summary
Ofgem published a consultation on the draft second preliminary Strategic Direction Statement (SDS) for energy industry codes. The consultation seeks feedback on the proposed categorisation of policy areas and whether any key areas requiring code changes are missing from the assessment. Comments are due by 28 May 2026. This follows the first preliminary SDS published in August 2025 and supports transition to a new code governance framework under the Energy Act 2023.
What changed
Ofgem is consulting on the second preliminary Strategic Direction Statement for industry codes, building on the first preliminary SDS published in August 2025. The document outlines Ofgem's proposed approach for converting the preliminary SDS to a hybrid document once the Balancing and Settlement Code and Retail Energy Code are designated by end of 2026. The Energy Act 2023 granted Ofgem new functions to set direction for designated electricity and gas industry codes.
Code administrators, code parties, central system delivery bodies, and consumer groups should review the draft SDS and submit responses by 28 May 2026 via industrycodes@ofgem.gov.uk. Parties should assess whether the policy area categorisation is appropriate and identify any key areas missing from the assessment. The consultation documents include the draft SDS and a response template.
What to do next
- Review the draft second preliminary SDS and assess how proposed policy area categorisation affects your operations
- Submit consultation response by 28 May 2026 using the provided response template
- Identify and flag any key areas requiring code changes that may be missing from Ofgem's assessment
Archived snapshot
Apr 2, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Consultation on the draft second preliminary Strategic Direction Statement for industry codes
Publication type: Consultation Publication date:
2 April 2026
Closing date: 28 May 2026 Topic: Energy codes Get emails about this page Print this page
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- We are seeking feedback on the second preliminary Strategic Direction Statement (SDS) for industry codes.
Consultation description
The transitional powers provided by the Energy Act 2023 gives Ofgem new functions to set the direction for the development of designated electricity and gas industry codes. As part of the transition to a new code governance framework, Ofgem published the first preliminary Strategic Direction Statement in August 2025.
We are now consulting on the proposed content of the second preliminary SDS, including our categorisation of policy areas and whether any key areas which may or will require code changes are missing from our assessment. We are also seeking views on our proposed approach for converting the second preliminary SDS from a preliminary to hybrid document, once the expected designation of the Balancing and Settlement Code and the Retail Energy Code occurs by the end of 2026.
Who should respond
We want to hear views and feedback from anyone who has an interest in, or works on, the energy codes. This includes:
- code administrators
- code parties
- central system delivery bodies
- consumer groups
How to respond
Submit your response by 28 May 2026 by emailing industrycodes@ofgem.gov.uk. A response form is provided with the consultation.
Consultation documents
Consultation on the draft second preliminary Strategic Direction Statement [PDF, 233.60KB] Subsidiary document 1: draft second preliminary Strategic Direction Statement [PDF, 0.98MB] Subsidiary document 2: Draft second preliminary Strategic Direction Statement spreadsheet [XLSX, 622.43KB] Consultation on the draft second preliminary Strategic Direction Statement: response template [DOCX, 125.93KB] Get emails about this page Print this page
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