Spark - The Ofgem Newsletter (September roundup 2025)
Whether you're in policy, the energy industry, or just passionate about the future of energy, this roundup is for you.
This is our selection of the top announcements and article posts from Ofgem over the last month that deserve a second look, or you might have missed.
This month;
- We confirm plans to introduce lower standing charge tariffs
- Announcing £8.2 million in new funding to support 13 projects aimed at modernising Britain’s energy networks
- Partnering with Mediaplanet UK & IE for the Energy Transition Campaign to highlight smart innovations and sector-wide sifts to cleaner energy
- Super battery projects to maximise renewable-generated power enter the next phase of our green power storage scheme
- Appointing an independent auditor to Drax
- Heat Networks Regulation is Coming, an article by Helena Charlton, Director – Heat Networks.
Featured news
Ofgem confirms plans to introduce lower standing charge tariffs
Ofgem announces a new requirement for suppliers to offer at least one lower standing charge tariff to their customers.
- The regulator has published a consultation on requirements for suppliers to offer a lower standing charge tariffs.
- Under the plans, these tariffs would be available to customers in every region of Great Britain (England, Scotland and Wales) by January 2026.
- This follows the launch of the regulator’s wide-reaching review of how essential costs are shared across the system.
Households will be given more choice in how they pay the fixed costs currently covered by the standing charge under plans put forward by the energy regulator, Ofgem, published on Wednesday 24 September 2025.
Standing charges cover the fixed costs of delivering energy to peoples’ homes and businesses, including the cost of essential maintenance and infrastructure upgrades.
While the regulator is clear that it cannot remove the costs that make up the standing charge from the system and can only move from one part of the bill to another, it has carefully considered how to offer more choice for how customers pay these costs.
Ofgem has published a consultation on introducing new rules that will require suppliers to offer a lower standing charge tariff, which will make the option available to all customers in every region of Great Britain. If implemented, the tariffs will be offered by suppliers by the end of January 2026, and will be available to all consumers on different payment methods.
However, the regulator has made clear that this change is unlikely to reduce bills, as tariffs with a lower standing charge will have a higher unit rate. So, once available, customers should consider their circumstances and seek advice from their supplier or consumer groups.
Ofgem announced £8.2 million in new funding to support 13 projects aimed at modernising Britain’s energy networks
These initiatives aren’t just about decarbonisation; they’re about putting consumers at the heart of the energy transition. From unlocking system flexibility to accelerating infrastructure delivery, each project is designed to build a smarter, more responsive energy system that works better for everyone.
Deputy Director for Energy Systems Management & Security Marzia Zafar said:
“By supporting these initiatives through the Strategic Innovation Fund, Ofgem is helping to unlock system flexibility, accelerate infrastructure delivery, and ensure consumers remain central to the energy transition”
Learn more about how these projects will help shape a future-ready energy system: Ofgem SIF: successful cycle three projects awarded £8.2 million – UKRI
Ofgem partners with Mediaplanet UK & IE for the Energy Transition Campaign to highlight smart innovations and sector-wide sifts to cleaner energy
By investing in the grid, we’re not just helping to stabilise bills, we’re also building resilience against global energy shocks.
Read Jonathan Brealey’s article to find out more : Proving that effective regulation can power major energy transition progress
Super battery projects that maximise renewable-generated power enter next phase of Ofgem’s green power storage scheme
Ofgem is confirming the 77 projects entering the final assessment stage of a government-driven ‘super battery’ support scheme designed to secure investment, promote growth and stop green energy going to waste.
Long Duration Electricity Storage (LDES) will play a key role in Great Britain’s grid expansion, storing extra renewable energy when the weather conditions are producing more than we need, and use later when the wind is not blowing.
As the UK accelerates its transition to clean power, we’re all familiar with the technologies at either end of the energy journey — from solar farms and wind turbines generating renewable power, to electric vehicle chargers and heat pumps using it.
But what’s happening in the middle of that net zero journey is just as vital.
Innovations in grid infrastructure and LDES are quietly transforming how we manage renewable energy. Unlike fossil fuels, solar and wind power are intermittent — meaning there are times when we generate more energy than we need, and times when we don’t generate enough. LDES projects are designed to meet this challenge.
Instead of having to pay wind and solar farm operators to stop generating on particularly windy or sunny days, long duration electricity storage can maximise green energy production by providing more innovative ways to store that excess power so the generators can keep running for longer.
This stored electricity can then be used later when the weather changes and there isn’t enough renewable generation to meet demand – meaning even more savings for customers with less need to pay gas power stations to switch on to cover the shortfall.
Supporting a government growth pledge to build major new LDES projects for the first time in 40 years, Ofgem launched a new cap and floor support scheme in April to unlock billions in investment and boost Great Britain’s tech economy.
An initial group of 171 projects applied to the scheme and today the regulator is confirming that 77 applications are eligible to progress to the second phase of the process. These projects include a variety of storage methods such as Li-Ion batteries, flow batteries and pumped hydro storage, which releases water stored at height to turn turbines, creating electricity to power millions of homes across the country.
This diversity of technologies can all play a crucial role in delivering a cleaner, more efficient and secure energy system with the capacity to bring balance to Britain’s renewable energy production, whatever the weather.
Read in full: Super battery projects that maximise renewable-generated power enter next phase of Ofgem’s green power storage scheme | Ofgem
Jonathan Brearley visit’s Dinorwig Power Station and next stages of Long Duration Electricity Storage Can and Floor programme
Our CEO, Jonathan Brearley, visited Dinorwig Power Station in Wales to see a gold-standard example of how we can harness our natural resources to generate clean power, and store it so not a watt goes to waste.
We also moved forward with the next phase of the Long Duration Electricity Storage (LDES) Cap and Floor programme. This means we are now reviewing the projects that passed the first eligibility stage to decide which ones will be offered a Cap and Floor arrangement.
You can read more about LDES here – Super battery projects that maximise renewable-generated power enter next phase of Ofgem’s green power storage scheme | Ofgem
You can watch Jonathan’s reflections on his visit to Dinorwig Power Station here - https://www.linkedin.com/feed/update/urn:li:activity:7376525855893905408
Want to help shape Ofgem’s delivery of the LDES programme? We’re hiring a Head of LDES policy. You can find out more and apply here (closes October 6) - Head of Policy - LDES Delivery - Civil Service Jobs - GOV.UK
Renewables take centre stage
Thanks to non-domestic renewable heat incentive, the National Theatre is leveraging renewable technologies such as a ground source heat pumps to achieve net zero by 2030.
We visited their landmark South Bank site to see it’s sustainable efforts in action - https://www.linkedin.com/feed/update/urn:li:activity:7373640122480689152
Appointment of Independent Auditor to Drax
Ofgem and Drax Power Limited (“Drax”) are announcing the appointment of Forvis Mazars to conduct an independent external audit of Drax’s annual profiling data and associated reporting.
Ofgem are announcing Drax Power Limited’s (“Drax”) decision to appoint Forvis Mazars to conduct an independent external audit of Drax’s annual profiling data and associated reporting for the compliance period 1 April 2023 to 31 March 2024 (referred to as CP22). This is a non-financial audit, focusing on operational and compliance data and relates to 98% of Drax’s international supply chain and their legal obligations to the Renewables Obligation (RO) scheme and is the largest audit of its kind.
The auditor has been appointed by Drax following an open, fair and transparent process, where Ofgem was an active observer throughout. The independent audit will be completed to the internationally recognised standard, ISAE3000, and completed to a “reasonable” level of assurance.
Read in full: Appointment of Independent Auditor to Drax | Ofgem
Georgina Mills features on Modo Energy Podcast
Regulation plays a huge part in delivering net zero. The rules shaping investment, consumer protection, and risk management are critical to hitting climate targets on time.
Our Director of Energy Systems, Georgina Mills, spoke on the Modo Energy podcast about balancing trade-offs in the energy transition and adapting frameworks for a fast-changing market.
You can find the fill episode on your podcast platform of choice.
Featured Article
Heat Networks Regulation is Coming, an article by Helena Charlton, Director – Heat Networks.
Heat networks provide heating, cooling and hot water to multiple properties in a building or to multiple buildings from a single source. From January 2026, Ofgem will begin regulating heat networks. This is an important step towards stronger protections and better outcomes for consumers. These new regulations will establish the fundamental standards that every heat network customer deserves and create a fairer, more reliable system that works for everyone.
As many parties are not currently regulated as energy providers, this will require working with the heat networks industry and consumer bodies to fully understand the challenges and bring in a proportionate and effective approach.
Why we need to regulate.
As a mostly unregulated market, unlike gas and electricity, heat network consumers are not offered many protections.
We need to regulate so that energy consumers can be protected and get a fair deal. This means that we will begin to introduce some core protections, including:
- how customers are billed
- customer service standards
- complaints handling
- protections for vulnerable consumers
We believe that regulation will create the stable, trustworthy environment that encourages investment in heat networks while giving consumers the confidence they need to embrace being on a heat network.
The challenges
Introducing regulation poses significant challenges because of a combination of things including:
- poor design
- variations in customer service and consumer protection
- the large number and diversity of organisations, public bodies and private individuals and other entities who operate heat networks
- the interaction with housing regulation
To address these challenges, we are taking a phased approach to introducing regulation and will be employing a range of different regulatory methods.
This is an edited version of a longer article that you can read in full here: Heat networks regulation is coming | Ofgem
Next time - Our CEO Jonathan Brierly speaks at this year’s EUK Conference. We'll bring you the highlights and latest updates.
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