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Ofgem regulates the electricity networks and sets the rules that govern how new connections and embedded generation are treated. Developers seeking to add generation capacity, storage or substantial new demand must engage distribution network operators (DNOs) and consider the connection application process, technical requirements and cost apportionment for reinforcement. Ofgem-led reforms over recent years have emphasised transparency in connection charging and the efficient use of existing network capacity.
Key practical considerations include the distinction between contestable and non-contestable works, requirements for reinforcement where local capacity is insufficient, and the potential for reinforcement costs to be allocated across multiple connections. For embedded generation, issues such as export limits, metering arrangements and compliance with network codes are significant. Developers also encounter differences in treatment for licensed generation versus unlicensed self-consumption schemes.
Connection timelines and the allocation of responsibility for works influence project timetables and capital planning. In addition, evolving arrangements for access allocation and flexibility market participation affect the operational value of on-site generation. Developers must factor in consent, safety coordination and compliance with distribution codes when integrating energy assets into property schemes.
Understanding the regulatory framework and operational interface with DNOs supports realistic project planning and risk assessment. Clear early engagement with network operators, assessment of reinforcement exposure and awareness of Ofgem guidance can help manage technical and commercial outcomes for embedded energy on property developments.