Locational Charges and Regulatory Siting Levers Under Reformed National Pricing

In July 2025, 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 

Please email your response to the Call for Input and/or the Expression of Interest for the Locational Charges Design Group to RNPchargingreform@ofgem.gov.uk. 

Expression of interest 

If you are interested in joining our Locational Charges Design Group, please submit your response by 5pm on Wednesday 22 April. 

Call for input

Please submit your responses to the call for input by 5pm on Tuesday 26 May. 

Questions are listed at the end of the Call for Input document, and please follow the ‘how to register’ section of the working group Expression of Interest letter.