What is CMP448? Explaining the new progression commitment fee for grid connection queues

As part of the UK’s ongoing overhaul of the electricity grid connection process, the National Energy System Operator (NESO) has proposed a new measure — CMP448 — that would introduce a Progression Commitment Fee (PCF) for certain projects in the queue.

The PCF is aimed at improving the efficiency of grid access by encouraging timely decisions from developers and freeing up capacity currently held by stalled or speculative projects. In this article, we outline the key features of the proposal, define the 'activation trigger' and highlight next steps for developers involved in a project seeking a grid connection.

What is being proposed?

Under CMP448 a PCF would apply to projects that have accepted a Gate 2 connection offer but have not met User Progression Milestone 1, which initiates statutory consents and planning permission.

Key features of the proposal include:

• Dormant by default: initially no PCF will be introduced. NESO will only activate the provisions and apply the fee, to any project with a Gate 2 offer which has not met Milestone 1, if grid queue 'health' metrics deteriorate. See more detail under 'activation trigger' below.
  
  
• Fee structure, if activated:
  • Starts at £2,500 per MW of capacity.
  • Increases by £2,500 per MW every six months.
  • Capped at £10,000 per MW for each individual project.
• Security required: if activated, developers must post a security against the Progression Commitment Fee Security following receipt of a Gate 2 offer or activation by NESO, which will remain in place until the developer demonstrates Milestone 1 has been reached.
  
  
• When it applies: the fee would become payable if a project is terminated or reduces its capacity after receiving a Gate 2 offer but before hitting Milestone 1.

What is the 'activation trigger'?

NESO is proposing a metric to track the cumulative MW capacity of projects that are terminated from the Gate 2 connections queue due to failure to meet Milestone 1. If this cumulative total exceeds a set threshold, currently proposed at 6,000 MW over an initial five year period, NESO would gain the right to activate the PCF. However, activation would remain discretionary; NESO would not be obliged to implement the fee immediately upon crossing the threshold and the Office of Gas and Electricity Markets' (Ofgem) approval would also be needed.

Ofgem’s decision

On 20 October Ofgem published a consultation outlining its minded-to position in favour of approving CMP448. The regulator has indicated support for the proposed introduction of the PCF. Stakeholders now have until 3 November 2025 to response to the consultation before a final decision is made.

You can access the consultation here.

What should developers do?

If you're involved in a project seeking a grid connection you should:

• Submit any responses to Ofgem’s consultation by 3 November 2025.
• Assess your project’s readiness to reach Milestone 1.
• Engage early with legal and commercial advisors to understand implications under the broader connections reform programme.

Next steps

CMP448 is currently awaiting a final decision and is being progressed under an urgent timetable. NESO intends for the mechanism to be in place before any Gate 2 offers are issued under the new connections framework.

For more information, you can access our Gate 2 timeline, or contact our energy and resource management team for support.