The UK government has published its reformed national pricing (RNP) delivery plan, laying out steps to cut network constraint costs and reform signals that determine where new generation connects to the grid.
Constraint costs hit £1.34bn ($1.8bn) in 2024-25, as grid operator Neso paid generators to adjust output to manage grid bottlenecks. Around two-thirds of that — roughly £910mn — went to gas-fired plants ramping up to replace curtailed wind plants. Without new action, costs could peak at around £7bn in 2030-31, before declining as network capacity improves, Neso said.
The government expects to remove up to £1bn from that peak through the measures laid out in the plan. Speeding up three key transmission projects — the Norwich to Tilbury links and Sea-Link — from 2031 to 2030 could cut a further £4bn in that year, according to Neso.
In the near term, all three transmission asset owners — SSE, SP and National Grid — have pledged to roll out dynamic line rating (DLR), which uses real-time weather and temperature data to determine actual line capacity. DLR could save consumers up to £400mn in 2030, according to Neso's forecasts. Neso's control room upgrades to use DLR will be completed in phases through to 2027-28.
The RNP plan also sets out other near-term measures to manage constraint costs ahead of 2030. These include better co-ordination of system access, through which parts of the network are taken off line for maintenance and upgrades, and exploring tools that allow Neso to act ahead of gate closure to reduce the volume of balancing actions needed in real time. The government is also investigating how battery storage assets can be better incentivised to support the grid during constrained periods, as some assets currently engage in repetitive retrading that worsens constraints, it said.
A large-scale trial will offer consumers in constrained areas of Scotland and east England access to cheaper or free power during periods of surplus wind power generation, with final consumption levies temporarily removed to make raising demand more competitive than other balancing options.
On locational signals, the plan is consulting on how to reform the country's connections regime and transmission network use of system (TNUoS) charges to steer generation toward zones identified in the upcoming strategic spatial energy plan. The government "prefers" options that use directive connections — capping the volume of projects that can connect by technology and zone — either alongside stronger locational charging or without it, it said.
One option under consideration would modify TNUoS charges to reflect the future planned network rather than the existing one, giving investors earlier signals about where grid capacity will be available — although the government acknowledged this would significantly increase modelling complexity.
The government does not intend to make changes to existing connection offers or retroactively alter contacts for difference or capacity market agreements already issued, it said. Final decisions on how to combine the siting levers are targeted for later this year. The consultation will close on 2 June.
