Ofgem has rejected CMP432, a proposed reform by the National Energy System Operator (NESO) intended to improve the fairness and predictability of locational transmission charges under the Transmission Network Use of System framework.
The proposal sought to align costs more closely with actual network planning requirements, reducing volatility and improving cost reflectivity-particularly for renewable developers preparing bids in the upcoming Contracts for Difference Allocation Round 7.
Its rejection comes just days before the AR7 sealed bidding window opens, leaving Scottish projects exposed to continued uncertainty over transmission costs.
Scottish Renewables head of grid and networks Stephen McKellar (pictured) said: “The decision to reject CMP432 is yet another failure from Ofgem to address the damaging and long-standing impact of TNUoS charges on Scottish renewable energy projects which are unfairly penalised by the current system.
“Rejecting the proposal sends a deeply concerning signal to developers in Scotland already grappling with disproportionate and unpredictable costs. With the latest CfD auction around the corner, the decision worsens an already challenging environment for investment.
“CMP432 would have aligned charges more closely with actual network planning needs, making the system fairer and more predictable. Whilst only an interim measure, this proposal would have benefited consumers, our economy and energy security in the long-term by offering much needed confidence to Scottish projects.
“Scottish Renewables is urging Ofgem, NESO and the UK Government to urgently create interim provisions that balance the regional impacts of transmission charging while aligning with the next phase of long-term electricity market reform.”