Transmission license exemption reform
Published 4 November 2026
© Crown copyright 2026
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/energy-independence-bill-factsheets/transmission-license-exemption-reform
Factsheet relating to the Energy Independence Bill.
Summary
This measure changes how transmission licence exemptions are granted and updates key parts of the Offshore Transmission Owner (OFTO) regime to reduce delay and uncertainty in delivering electricity infrastructure. It allows the Secretary of State to grant, vary or revoke onshore and offshore transmission licence exemptions by ministerial direction, rather than through a statutory instrument. This speeds up the transmission licence exemption process while retaining existing safeguards, including public consultation, published decisions and regulatory oversight.
In addition, this measure changes the start date of the Generator Commissioning Clause (GCC) period so that it begins at the start of Ofgem’s tender exercise for an OFTO project, rather than automatically when the National Energy System Operator (NESO) issues a completion notice. This ensures offshore wind developers can reliably make use of the full commissioning period set out in statute to transfer their transmission assets to an independent OFTO.
Onshore, a more streamlined licence exemption process could help future-proof the connection process by making it easier to facilitate alternative delivery models where appropriate, should government choose to enable such approaches in future.
Together, these changes support faster and more predictable delivery of projects onshore and offshore that are crucial to our energy security and economic growth, while maintaining strong consumer protections.
Why are we legislating?
Delays between key stages in the offshore transmission process can compress the time available to transfer assets, increasing delivery risk and uncertainty for projects that are otherwise ready to proceed.
This is compounded by a process for transmission licence exemptions that can create unnecessary administrative burdens and add time to the connection process. Secondary legislation is dependent on the Parliamentary timetable meaning, for example, that it cannot proceed during recess. This can cause delays and increase uncertainty for developers, which in turn may affect investor confidence, even where there are no underlying technical or safety concerns.
This measure does not change how exemptions are assessed, only the procedure by which they are granted. Consultation and transparency requirements remain in place, and ministers will continue to publish their reasons.
What are the government’s objectives with this measure?
This measure supports the delivery of clean power, economic growth and longer-term net zero ambitions.
For offshore wind, the objective is to ensure the existing OFTO regime continues to function effectively as projects increase in size, complexity and distance from shore. The government seeks to reduce delivery risk within the current framework, while maintaining competition, consumer protections and unbundling requirements, so that offshore wind projects can proceed with greater certainty through commissioning and asset transfer.
For onshore, the government aims to ensure the connection framework remains flexible and responsive to evolving system needs. A more streamlined licence exemption process could help future-proof the connection process by making it easier to facilitate alternative delivery models where appropriate, should government choose to enable such approaches in future.
How will this measure deliver these objectives?
Between 2016 and 2023, 11 of 14 offshore wind projects required time limited transmission licence exemptions. These included cases caused or exacerbated by delays to the tender process rather than developer performance.
This is a low-cost, technical reform that delivers administrative savings and improves predictability for developers, Ofgem and delivery bodies. It identifies no material costs to businesses or consumers and no changes to environmental protections, competition or the OFTO regime.
Introducing a streamlined process for onshore and offshore transmission licence exemptions ensures the framework is ready for future system needs, supporting the timely delivery of clean power, electrification and economic growth.