Energy system cost allocation and recovery review

Closes 24 Sep 2025

Assessment framework

Summary

In this chapter we set out five criteria to consider when we refine and appraise options to recover energy system costs from consumers.

It includes potential areas of analysis and data sources for these criteria. We also consider how the criteria may interact and potential trade-offs as well as the timeframe for our assessment. 

Details

To change the way we allocate and recover costs will involve trade-offs. We want to make the system fairer and more efficient, but at the same time recover the cost of modernising our systems.

The five criteria are:

  • efficiency
  • fairness
  • practicality
  • net zero
  • economic growth

These will not all carry equal weight, but be used to assess both domestic and non-domestic energy users.

Before you give us your views

You’ll need to read the full details in the Assessment framework chapter of the consultation (PDF, opens in new window). 

6. What do you think of the five criteria we have proposed to assess and the descriptions we have provided for their scope? How should we balance the trade-offs between these?
7. What evidence should inform our options assessment? You are encouraged to share information, analysis and evidence with Ofgem to inform our assessment.
8. What are the main trade-offs between our proposed assessment criteria? What are the main positive interactions?
9. Do you agree we should consider impacts up to 2035?