Locational Charges and Regulatory Siting Levers Under Reformed National Pricing

In July 2025, the government concluded the Review of Electricity Market Arrangements (REMA) and launched the Reformed National Pricing (RNP) Programme. A central part of this programme is the reform of locational charges for new assets, to guide investment to locations consistent with the Strategic Spatial Energy Plan (SSEP). 

This call for input sets out Ofgem’s early thinking on reforms to transmission network charges, and invites views and new proposals from stakeholders. The purpose is to identify a full range of options before further policy development.  

The options in the call for input range from incremental refinements of current arrangements through to more transformative approaches. We anticipate delivering reforms by 2029. 

In addition, it provides some initial considerations for designing locational charges for demand and storage assets, recognising that their operational behaviour and responsiveness to signals may differ from those of generation assets.  

We explore the scope of appropriate arrangements for legacy and transitional assets, meaning assets either already operational, or for which investment decisions have been taken before the full implementation of RNP. These assets may benefit from tailored transitional arrangements in order to support predictability, fairness and value for consumers and to maintain investor confidence when any new locational charging regime is introduced. 

We look to continue engagement through a dedicated expert working group- the Locational Charges Design Group. In addition to the main call for input, we invite applications to this working group through an Expression of Interest form. 

Who should respond

We welcome responses from a broad range of industry stakeholders involved in the implementation of the SSEP. This includes:

• generators
• storage operators
• trade associations
• investors
• transmission operators
• consumer group representatives 

How to respond 

The closing date for submitting call for input responses has been extended by one week to align with the government’s recent publication on Reformed National Pricing, therefore allowing for more comprehensive representations.

Call for input

Please email your call for input response to RNPchargingreform@ofgem.gov.uk by 5pm on Tuesday 2 June 2026. Questions are listed at the end of the call for input document.

Expression of interest 

The Expression of Interest for the Locational Charging Design Group is now closed and we will be in touch with applicants shortly.