Modifications to electricity distribution licence Special Conditions to enable TMO4+ connections reform

Details of outcome

Following our statutory consultation earlier this summer, we have decided to create a new pass-through mechanism in the RIIO-ED2 price control for Distribution Network Operators (Licensees). This is to support DNOs in carrying out the implementation of TMO4+ as part of Connections Reform, specifically the Gate 2 to Whole Queue Exercise, to allow pass-through of reasonable costs associated with this one-off exercise.  

A supporting Governance Document (the Connections Reform Costs Governance Document) has also been created to provide greater clarity on the costs that may be recovered through the mechanism, as well as the associated obligations on DNOs. 

These modifications to the licence will take effect from 27 January 2026. 

Read the full outcome

Original consultation

We are consulting on the creation of a new pass-through mechanism in the current price control for Distribution Network Operators (Licensees). This is proposed to support DNOs in carrying out the implementation of TMO4+, specifically the Gate 2 to Whole Queue Exercise, to allow pass-through of reasonable costs associated with this one-off exercise. 

We are also consulting on the creation of a supporting Governance Document (the Connections Reform Costs Governance Document) to provide greater clarity on the costs that may be recovered through the mechanism, as well as the associated obligations on DNOs.