The National Electricity System Operator (NESO) in the latest of connections reforms updates has published an open letter and a legal letter of comfort to Ofgem on 15 January 2025. The big announcement from both letters is that from 29 January 2025 it shall no longer accept new applications to connect to the grid. NESO has cited the increased number of applications to connect to the queue (over 1000 from April to November 2024 according to NESO) and providing customer clarity over whether the new reforms will apply to their connection.

NESO has admitted that a connection application submitted today, assuming NESO's proposals are approved by Ofgem, will be caught by the new reforms. We have looked into some of the key takeaways from the two letters.

Which applications does the "pause" apply to?

NESO will not accept "transmission and distribution applications, including new applications, modification applications, BEGA and BELLA applications and Project Progressions" from 29 January 2025. Distribution Network Operators (DNOs), however, will continue to accept applications but where they require TIA/Project Progressions, they will not be passed to NESO. The Transmission owners can still trigger Agreement variations and Notices through the period.

In "limited exceptional circumstances" where NESO/Transmission Owners agree that it is necessary for "critical business, strategic or network needs", offers may be made for Modification Applications submitted after 29 January 2025 that:

  • are linked to circumstances where the modification application will not have material impact on the new process; or
  • relate to the safety and security of the network; or
  • are "delivery-critical modification applications" for connections before the end of 2026; or
  • are excepted on a case-by-case basis, against a set criterion determined by NESO and the Transmission Owners, which will cover;
    • possible impact against the overall project programme.
    • committed spend.
    • impact on other projects; or
  • are excepted on a case-by-case basis, where NESO or the Transmission Owner considers that failure to process the modification application could have detrimental impact on the safety and operation of the network.

…and which won’t the "pause" apply to?

The transitional offer process currently in place will only apply to new connected demand projects and not new directly connected generation projects from 29 January 2025 or until Ofgem approves or rejects the reforms to align with targets set in its Clean Power 2030 Action Plan. All new applications that form part of the transitional arrangements must be made by 21 March 2025 and clock-started by 4 April 2025 or the reformed process will apply.

Next steps

Ofgem is due to respond to the connections reforms by the end of Q1 2025. If you have questions around the grid connections reforms coming this year our team of Energy experts can help. Please contact James Stanier and Russell Evans for more information.