Subscribe to our Construction Newsfeed
UK Construction Directory
Search our 146,423 companies....

Construction News

09/12/2025

Ofgem Unveils Tough Grid Connection Reforms To Cut Delays

Ofgem has set out wide-ranging plans to accelerate grid connections, cautioning transmission and distribution companies that they will be held to demanding performance targets or risk financial sanctions.

An update to its ‘connections end to end’ review published today outlines stronger licence obligations, new penalties and firmer enforcement aimed at eliminating unacceptable holdups that have left developers facing sunk costs and lost revenues running into the tens of millions of pounds.

The new regime for transmission and distribution network operators will be developed in 2026. It is intended to cut delays for ready-to-build clean power projects, large-scale storage, smaller connections for electric vehicles and low‑carbon heating, and new demand from energy‑intensive users including industry, housing and data centres.

While record volumes are connecting, many approved schemes remain stuck awaiting access. Ofgem said today’s package is the next step in overhauling the system, following the National Energy System Operator’s (NESO) announcement that a pipeline of deliverable, ready‑to‑go projects will be prioritised for connection.

The proposals underpin Ofgem’s five‑year settlement announced on 4 December 2025, which aims to unlock up to £90bn of investment in the transmission network to upgrade power and gas grids and build a future‑ready system that better insulates consumers from volatile energy bills.

-- Advertisement --
hss

The end‑to‑end review assessed each stage of the connections process across Great Britain’s three high‑voltage transmission operators and six distribution operators. It found some developers face delays of several years beyond their original offers, with major projects reporting losses in the tens of millions, others seeing costs rise by up to 200%, and some schemes cancelled due to supply‑chain and investment bottlenecks caused by delays.

The review highlights the need to overhaul existing penalty arrangements, noting that DNOs face limited penalties for missed connection dates while transmission companies face none—an “asymmetry of risk” that leaves developers carrying heavy costs while networks face minimal consequences.

Ofgem proposes to standardise processes, enforce deadlines and introduce tougher sanctions if operators fall short. Plans include enforceable standards set through licence conditions, penalties for missing tightened milestones and delivery dates, significantly higher compensation for delayed projects, and mandatory publication of real‑time data on grid capacity, constraints and queue positions to help developers plan and avoid bottlenecks.

Director General for Infrastructure, Akshay Kaul, said: “With major delays impacting billions of pounds of potential infrastructure projects and limiting the success of our wider clean power ambitions, it was clear that the regulations that underpin the connections system needed to be reviewed urgently.

“The connections queue has now been reduced by nearly two thirds, ensuring that the projects in the queue are those that are needed to deliver the Government’s ambitious net zero plans. The days where hundreds of unviable projects would sit in the queue with no consequences are over. Instead, the right projects will be built in the right place and at the right time.

“But we must go further, which is why we’ve carried out a root-and-branch assessment of the entire system. Britain’s energy transition depends on networks delivering connections on time, so network operators must be accountable for any failure to get clean power plugged into the grid. We must ensure that customers seeking to connect these projects that the country needs for clean power and economic growth receive the standards of service that enable speedy connections, so that consumers see the benefits quicker.”

The consultation is open until 27 February 2026.

Latest Construction News

24/07/2026
Planning approval has been granted for the redevelopment of the Crystal Palace National Sports Centre (CPNSC), marking a major milestone in securing the long-term future of one of the UK's most significant sporting venues. The decision allows the project to move forward to the next phase, creating
Read More
24/07/2026
Designer Group has been appointed to carry out the mechanical and electrical (M&E) works for the redevelopment of West One in London, a major refurbishment and rebuild located above Bond Street Underground station. Originally developed in the late 1970s, the existing West One Shopping Centre is bei
Read More
24/07/2026
The London Irish Centre has appointed Sisk, one of Ireland and Britain's leading construction firms, as the main contractor for the £36–£38 million transformation of its home at 50–52 Camden Square. Work is due to start in early 2027 and the centre is planned to reopen in Q1 2029, marking a major s
Read More
24/07/2026
Network Rail has confirmed that Botley Road in Oxford will remain closed beyond the end of August, delaying the previously planned reopening agreed when the programme was revised in January 2025 to prioritise getting traffic moving again. During recent drainage excavation for the new road layout, t
Read More
24/07/2026
Network Rail and The Arch Company have agreed a multi-million-pound transaction to transfer a selection of London property assets into Arch Co's ownership, marking a further milestone in their ongoing partnership. The package comprises a mix of railway arches and other investment properties — inclu
Read More
24/07/2026
More than 100 builders came together in Oxfordshire for the FMB's National Conference, which doubled as a milestone celebration of the Federation's 85 years supporting the trade. Staged on 9–10 July at the Oxford Belfry Hotel & Spa, the event welcomed 156 delegates for a Business Conference under t
Read More
24/07/2026
Established in 1996, The Access Flooring Company—distinguished from copycat businesses—marks three decades of excellence by reinforcing its position as the UK's premier specialist in raised access flooring, raised floor configurations, and advanced pedestal floor system technologies. Marking its la
Read More
24/07/2026
NFRC is urging members to help shape a new Government strategy for built environment professions, as the sector adjusts to the Building Safety Regime and renewed expectations on competence, professionalism and accountability. NFRC recently took part in a Build UK forum with the Building Professions
Read More
24/07/2026
Fire safety in homes and buildings is under closer scrutiny than ever. Whether you’re replacing a door, adding a glazed screen or partitioning a space, using the correct fire-rated glass is essential. The Glass Shop Online supply certified fire-rated glass and help customers navigate the requiremen
Read More
23/07/2026
Mace Consult has been appointed across six lots of Transport for London's (TfL) Professional Services Framework 3 (PSF3), strengthening a long-running collaboration and positioning the firm as a leading delivery partner on major infrastructure across the capital. Under the framework, Mace Consult w
Read More
Lakeside HirePro Structures LtdBRICOFLOR UK1A Ideal LocksmithsRewire SecurityCommfire LtdAccess Design & Safety Ltd365 vacexPlantation Shutters Ireland LtdSevenoaks Environmental Consultancy Ltd