Consultation on the draft second preliminary Strategic Direction Statement for industry codes

Consultation description 

The transitional powers provided by the Energy Act 2023 gives Ofgem new functions to set the direction for the development of designated electricity and gas industry codes. As part of the transition to a new code governance framework, Ofgem published the first preliminary Strategic Direction Statement in August 2025.  

We are now consulting on the proposed content of the second preliminary SDS, including our categorisation of policy areas and whether any key areas which may or will require code changes are missing from our assessment. We are also seeking views on our proposed approach for converting the second preliminary SDS from a preliminary to hybrid document, once the expected designation of the Balancing and Settlement Code and the Retail Energy Code occurs by the end of 2026.   

Who should respond 

We want to hear views and feedback from anyone who has an interest in, or works on, the energy codes. This includes:   

• code administrators  
• code parties  
• central system delivery bodies  
• consumer groups   

How to respond 

Submit your response by 28 May 2026 by emailing industrycodes@ofgem.gov.uk. A response form is provided with the consultation.