Here we go again: NESO turns its attentions to reforming the demand connections’ queue

Reforming another overloaded system

The dust has barely settled following the Gate 2 to Whole Queue process, but while developers of generation projects are waiting anxiously to hear the outcome of NESO's transmission and distribution connections' queue reform, NESO has turned its sights on the demand connections system.

On 6 November 2025, Ofgem published guidance setting out how it intends to address the significant increase in demand connections' applications, which it states have surged sharply since November 2024, purportedly surpassing all forecasts and expectations. One of the contributors cited by Ofgem is the increased demand from data centres, which require a vast amount of energy from the electricity network, along with other high use customers like ports, large residential developments and heavy plant and manufacturing facilities.

What is Ofgem hoping to achieve?

Ofgem recently approved NESO’s TMO4+ Connections Reform Package, which has reshaped queue management to prioritise projects that are genuinely ready and are 'needed' to support Clean Power 2030. It is possible that a similar approach will be adopted for the reform of the demands' queue.

Ofgem has set out several aims for the reforms under consideration:

• Build a viable, deliverable queue.
• Direct resources to projects which are ready and offer the most value to customers.
• Reduce grid connection times for strategically important demand projects (using increased regulatory powers introduced by the Planning and Infrastructure Bill).
• Assess the impact of enabling greater ownership and operation of high voltage assets (connections over 132 kV in England and Wales).

What does this mean for project developers?

Supported by Ofgem, NESO have launched a Call for Input ("CfI") to gather information on the composition of the demand queue. They will be directly contacting all customers with:

• An existing transmission-level demand connection agreement, or
• A directly connected generation agreement (that includes demand technologies, i.e. co-located sites).

The CfI aims to gather up-to-date project information including timelines, connection status, financial readiness, and overall maturity. By responding, project developers can help shape NESO's proposals, while also ensuring that their own project's readiness and viability have been clearly identified.

What you need to do if you are a demand customer

• Submit your CfI response no later than 5pm on 5 December 2025. Please note that if you have multiple projects, each demand-related project requires its own separate form.
• You can also share your thoughts on the reform by emailing [email protected] (closing date 5 December).

The grid connection reform process over the last 12 months has caused a great deal of uncertainty in the energy sector and this CfI, whilst welcome, is likely to create further investor uncertainty. We are currently supporting a number of clients in this space, so get in touch to find out more.