2025 was a year of significant change in the energy industry, with GB Connections Reform (CMP 434 and CMP 435) overhauling the connections process for generation and large scale demand. With so much to keep track of last year, you’d be forgiven for having missed another code modification which was approved by Ofgem on 8th December – the same day that NESO announced the results of the CMP 434 queue formation process!
CMP 448 introduces what is known as the Progression Commitment Fee (PCF): a new financial incentive (or financial burden, depending on your point of view) to be implemented in the reformed connection process from January 2026. But what is the PCF, and how might it affect your project?
What is the aim of the modification?
The PCF aims to encourage projects which have accepted a Gate 2 offer to continue progressing to connection, preventing a backlog of stalled projects like those seen in the pre-reformed connections queue.
What is the PCF?
The PCF is a £/MW cancellation charge against which projects will be expected to securitise during the period between accepting a Gate 2 offer and meeting Queue Management Milestone 1: Initiating Statutory Consents and Planning Permission. The proposed charge would start at £2,500/MW and increase by £2,500/MW every 6 months to a cap of £10,000/MW. This would mean a 50 MW project will be required to provide security of up to half a million pounds before applying for planning consent. Projects would be required to pay the full amount upon exiting the connection queue or pay a proportionate amount when reducing contracted capacity during this period. It’s worth also noting that the PCF will be in addition to the User Commitment Securities and Liabilities that are currently in connection offers, rather than replacing them.
While the introduction of further financial securities may worry some developers, some comfort can be taken from the fact that the PCF will be dormant when first implemented this year. The PCF will only be activated if both NESO and Ofgem believe it is required to maintain the ‘health’ of the connections queue. This will be measured using an activation metric, based on the total MW capacity of projects which have been removed from the queue for failing to meet Queue Management Milestone 1.
The initial activation threshold for this metric is proposed to be 6.5 GW (5% of the additional capacity required for CP30). The threshold is to be in place until 31st December 2030, when NESO will review and set a new threshold for the following 5 years. The activation metric is to be measured in 6-month intervals to check if the threshold has been exceeded. If it has, users will be given a 3 month notice period prior to activation, although Ofgem will have the power to override NESO’s decision to activate the PCF.
Decision and Implementation
Ofgem approved the original proposal for CMP 448 on Monday 8th December 2025. Two WACMs (Workgroup Alternative CUSC Modifications), which sought to reduce the fee by a factor of 10 or provide a discount for projects which elected to self-terminate, were considered. But Ofgem ultimately felt that the original proposal provided the strongest incentive for projects to assess viability.
The implementation date for CMP 448 was the 2nd January 2026, so that the change is in place ahead of Gate 2 connection offers being issued to projects which are in scope of the PCF.
How Can TNEI Assist?
TNEI has extensive experience in the grid connection process and an in-depth understanding of the CUSC and the proposed modifications. Grid Connection support services that TNEI offer include:
- Guidance on industry changes and support in further understanding upcoming code modifications.
- Techno-commercial Gate 1 and Gate 2 offer reviews, highlighting key risks, opportunities and next steps.
- Connection application preparation and submission within the application windows, including ModApps with a full fault in-feed study if required.
- Pre-application services (e.g. grid-led site finding, site and technology assessments, and feasibility studies in line with the ‘needed’ technologies specified in CP30).
- Clean Power 2030 Analysis providing an estimate of the amount of capacity in each transmission and distribution zone set out in the Clean Power 2030 Action Plan including indicative queue positions for each project.
If you would like further support with your connection offers or future connection applications, please contact gridconnections@tneigroup.com.
