OFGEM sets rules for 2028 to 2033 grid investment to meet growing demand in Britain

British energy regulator Ofgem has launched the Sector Specific Methodology Decision (SSMD), establishing the ED3 price control framework for Britain’s five electricity distribution network operators (DNOs) from 2028 to 2033.

The framework includes the following points:

• Baseline capital allowances will be strictly benchmarked against engineering evidence, utilizing in-period “uncertainty mechanisms” such as volume drivers and reopeners, to dynamically release funding only as real-world demand materializes.
• ED3 mandates a “build and flex” approach, forcing networks to prioritize smart demand-side management, such as battery storage, demand response, and smart EV charging, to maximize existing grid capacity before building physical upgrades.
• It also enforces strict connection metrics, including a 24-hour approval target for low-carbon technologies.