AwardedAwarded 11 November 2026
2026-077 Dedicated Network Service Licence Options
Ofgem · Local or regional public body
In brief
Ofgem awarded consultancy work to Cepa LLP on 11 November 2026.
The notice gives a value of £281,292 excluding VAT.
The contract runs for 1 year, starting 12 November 2026.
The buyer says it is suitable for small and medium-sized businesses.
Built from the notice's own fields. Always check the official notice before you bid.
What the notice says
Ofgem is undertaking further policy development following its April 2025 consultation on the review of regulatory arrangements for Dedicated Provision of Network Services (DPNS). The consultation considered a range of regulatory options and recommended the creation of a new licensable activity for dedicated provision of services. Consultation responses broadly supported the proposed direction of travel and aligned with the principles set out in that consultation of ensuring that future arrangements provide appropriate regulatory oversight, support a level playing field, enable innovation and investment, and establish clear roles and responsibilities. Ofgem requires the services of a…Read the full description
Ofgem is undertaking further policy development following its April 2025 consultation on the review of regulatory arrangements for Dedicated Provision of Network Services (DPNS). The consultation considered a range of regulatory options and recommended the creation of a new licensable activity for dedicated provision of services. Consultation responses broadly supported the proposed direction of travel and aligned with the principles set out in that consultation of ensuring that future arrangements provide appropriate regulatory oversight, support a level playing field, enable innovation and investment, and establish clear roles and responsibilities.
Ofgem requires the services of a supplier to analyse the current and future market environment, relevant system operability requirements and the potential impacts of different Dedicated Network Service licence implementation options. This analysis will determine whether a de minimis threshold (for example, similar to how generation licences have a sub-50MW class exemption) or another proportionality mechanism is necessary and appropriate,
and how any such mechanism could be designed. The supplier will assess a proportionate range of options, including a zero threshold where appropriate. In doing so, the supplier shall indicate how Ofgem could best set any such threshold, given that three different services are currently in-scope of the one licence (see below for list of services). This means providing a clear proposal on setting of de minimis values for each service, and for calculating this where a provider provides multiple services.
The assessment will cover dedicated provision of (any combination of):
* reactive power (absorption and injection);
* Inertia (natural and synthetic); and
* short-circuit level.
The work must consider the distinct technical characteristics of each service, including the appropriate measures of capability or output, the relevance of asset location, the potential for a provider to supply more than one service, and the implications of combining or separating thresholds across the three services. Recommendations
should be mindful of the types of providers and the other markets they may be engaged in, and consider the best balance of Ofgem's objectives for this potential licensing regime: proportional regulatory oversight, ensuring a level playing field between providers (whether 'dedicated' providers or otherwise), facilitating growth, and ensuring clarity on roles and responsibilities.
Who won
| Winner | Value | Dates |
|---|---|---|
| Cepa LLP (SME) | £281,292 | Awarded 11 November 2026 |
Values as the award notice gives them, excluding VAT where stated.
Timeline
- Contract award notice · notice 19e83390-a7bb-4d9d-b4b2-88fc89d9b1b8-921448
About the buyer
OfgemLast 12 months
Procurements
40Awards
35Suppliers it has used most for consultancy
- Cepa LLP2 contracts
- CPCS Transcom UK Ltd1 contract
- Cavendish Consulting Ltd1 contract
- Chatham Financial Europe Limited1 contract
- Grant Thornton UK LLP1 contract
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From notice 19e83390-a7bb-4d9d-b4b2-88fc89d9b1b8-921448 on Contracts Finder, first published 12 November 2026. We last checked for changes on 12 November 2026.