Ofgem proposes rejecting seasonal energy support scheme – have your say

06 November 2026

| 3 minute read

Pylons in Yorkshire

Ofgem has launched a consultation into a proposed change that would benefit users who need large electricity capacity for short but important periods.

Summary

  • 16 October 2026: Ofgem launches consultation.

Members affected by high fixed electricity charges are being encouraged to respond to a new consultation from Ofgem after it said it was ‘minded to reject’ the new scheme that could help farmers and growers.

Under the current system, 'high-capacity, low-utilisation' users can face the same network charges as businesses requiring high-capacity connections year-round, even though their annual electricity consumption is far lower. 

The NFU will be responding to the consultation, having long called for the scheme alongside NFU Energy.

The deadline for this consultation is 11 December. 

Keep track of the consultation’s progress on this page.

Ofgem launches consultation

Ofgem has launched a consultation on its move to reject proposals that would offer seasonal energy support for farmers and growers.

The consultation concerns a proposed change known as DCP (DCUSA Change Plan) 412, which was intended to address the impact of electricity network charges on ‘high-capacity, low-utilisation’ customers. 

These are businesses that need large electricity capacity for short but important periods, while using relatively little electricity over the year as a whole, such as grain drying, irrigation, lighting, heating and storage.

Under the current charging arrangements, businesses with similar connection capacity can face the same fixed network charge even when their annual electricity consumption is very different.

This can leave seasonal businesses paying standing charges that appear disproportionate to the electricity they use.

DCP 412 proposed a mechanism to reduce charges for qualifying high-capacity, low-utilisation customers, allowing qualifying sites to move down one band.

Ofgem ‘minded to’ reject proposals

However, Ofgem says it is currently minded to reject the proposal.

Ofgem has highlighted several issues with the scheme, stating that:

  • The proposed eligibility test may not identify the right customers.
  • Evidence of an effect on competition between electricity suppliers is limited.
  • Some versions of the proposal could create administrative complexity.

NFU called for scheme

The NFU and NFU Energy have been long calling for the introduction of the scheme and will respond to the consultation highlighting the effects on food production, business investment, rural resilience and agricultural electrification.

The response will say that a modified scheme should be developed to overcome the barriers, rather than a complete rejection.

NFU urges members to respond

Members can respond directly and are encouraged to provide evidence of how capacity-based charges affect their businesses.

The consultation runs to 11 December.

To find out more and respond to the consultation, visit: Ofgem | High-capacity, low-utilisation standing charges: minded-to position

This page was first published on 06 November 2026.

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