In recent weeks, we've been following the National Energy System Operator’s (NESO) updates on the connections reform timeline and complaints process. Ofgem have now launched a consultation on its supplemental guidance on the determination of disputes with distribution network operators (DNOs) and NESO.
In this article we recap on NESO's guidance to complaints on initial checks and explore Ofgem’s determinations guidance, outlining Ofgem’s proposed process for raising a dispute as part of the Gate 2 to Whole Queue Process. We also advise on the important steps that developers should take to prepare.
Before turning to Ofgem’s proposed guidance, it's useful to recap what NESO has already published in relation to complaints and disputes.
NESO has issued guidance on its complaints process for the initial checks stage. Under this framework, where a customer is dissatisfied with NESO’s decision following the initial checks, they may submit a formal complaint within two clear working days of receiving the final decision. Complaints can be lodged directly through NESO’s online portal or via the Complaints Process page on its website.
A procedural gap remains in the published material: there is currently no detailed guidance for developers wishing to raise a dispute with either NESO or a DNO concerning decisions, other than those relating to initial checks, made during the Gate 2 to Whole Queue Process (G2tWQ).
The proposal from Ofgem sets out when and how Ofgem expects to exercise its determination functions under the Electricity Act 1989, and in the standard conditions of the Electricity System Operator and electricity distribution licences.
Ofgem clearly states this guidance is supplemental to its existing 2017 determinations guidance, and does not replace that earlier framework and this supplemental guidance is only applicable to disputes arising from outcomes related to the one-off G2tWQ.
Ofgem’s guidance emphasises that parties must exhaust all available alternative dispute resolution mechanisms, including direct engagement with NESO or the relevant DNO, internal complaints procedures, and frameworks set out in the Connection and Use of System Code, before submitting a determination request to Ofgem.
For disputes relating to variations of agreements with NESO and/or a DNO, parties must:
Ofgem will consider whether to accept a determination request based on the evidence provided.
Ofgem has been very clear that determination will not be able to be requested if a party disagrees with NESO’s decision. Ofgem expects to only consider exceptional cases and a challenge will only be able to be made where there is clear evidence that NESO and/or the DNO has failed to follow the correct processes as set out in the Connection and Use of System Code, relevant licence conditions, or associated methodologies.
Ofgem’s starting position is that, if the connections process has been correctly followed, the terms offered by NESO or the DNO are presumed to be reasonable.
If a party does decide to seek a determination from Ofgem, they must complete a ‘Determination Request Form’. This will be included within the Gate 2 to Whole Queue Determinations Guidance and submitted in a determination gateway.
The supplementary guidance is clear that although Ofgem’s discretion is broad, the timescale for achieving determination means that the outcomes, even where the claim is upheld, are likely to be limited.
Ofgem categorically states that “it is unlikely that the Authority will be able to direct re-insertion into the connection queue ahead of the next evidence window due to the timescale for reaching a determination.”
Ofgem is also clear that outcomes would not include any financial compensation.
Prepare for evidence-based disputes: ensure that all communications, documentation, and decision records relating to your connection are retained and organised, as Ofgem will require evidence of any alleged procedural or regulatory failure.
Engage early: where possible, engage proactively with NESO or your DNO to seek clarification or resolution before resorting to formal dispute processes.
Respond to the consultation: developers may wish to submit views to Ofgem before the consultation closes on 14 November, particularly where the proposed guidance could affect current or future connection projects.You can read Ofgem’s proposal here.
The consultation is open until 5pm on 14 November 2025 and responses can be made by email to connections@ofgem.gov.uk. For further information, please contact our energy and resource management team.
