20 November 2025 – Ofgem has opened a statutory consultation under the Energy Act 2023 to establish a harmonised prioritisation process for modifications across all energy industry codes. This initiative marks a significant step in the ongoing energy code reform programme, aimed at improving governance and aligning code changes with strategic policy objectives.
The consultation seeks stakeholder feedback on proposals to standardise how code modifications are prioritised, ensuring consistency and transparency across the sector. Ofgem’s approach is designed to support the introduction of the Strategic Direction Statement (SDS) and facilitate the transition to reformed governance arrangements.
Key Elements of the Proposal
The consultation focuses on four core policy areas:
- Prioritisation Process – A unified framework for ranking code modifications.
- Criteria and Categories – Clear definitions for assessing urgency and impact.
- Governance – Oversight mechanisms to ensure fair and efficient decision-making.
- Implementation – Transitional arrangements using powers granted under the Energy Act 2023.
Accompanying the consultation are detailed guidance documents and proposed code text changes (Annexes B–L), along with a notice outlining the legal basis for these reforms.
Why It Matters
Industry codes govern critical aspects of the UK energy system, from market operations to infrastructure development. With increasing complexity and a growing number of modification proposals, a harmonised prioritisation process is seen as essential to manage resources effectively and deliver strategic outcomes, including the transition to a low-carbon economy.
Who Should Respond
Ofgem is inviting responses from:
- Code administrators and parties
- Central system delivery bodies
- Consumer groups
- Other stakeholders and the public
Responses must be submitted by 12 January 2026 via email to industrycodes@ofgem.gov.uk.
The consultation covers all designated codes and qualifying documents, including:
- Balancing and Settlement Code (BSC)
- Connection and Use of System Code (CUSC)
- Grid Code
- Distribution Code & DCUSA
- Retail Energy Code (REC)
- Smart Energy Code (SEC)
- Uniform Network Code (UNC)
- System Operator Transmission Owner Code (STC)
- Security and Quality of Supply Standard (SQSS). [ofgem.gov.uk]
Next Steps
Following the consultation, Ofgem will review feedback and publish a decision on implementation. Non-confidential responses will be made publicly available to ensure transparency.
For full details and access to consultation documents, visit Ofgem’s official page. [ofgem.gov.uk]