Ofgem’s proposed change to energy licence not going ahead

Ofgem has decided not to move forward with the proposed modification to the Generation Licence, which aimed to add a new section for assets dedicated to network service provision.

This decision follows a review of consultation responses and further analysis, which determined that the modification would go beyond the energy regulator’s legal powers under the Electricity Act 1989.

While the specific modification will not be implemented, Ofgem still plans to evaluate how assets dedicated to network service provision should be treated under the licence.

A broader review of this issue will be published later this year.