Biomethane entry reinforcement assessment window

We’re changing how we manage network reinforcements to make it easier, fairer, and more efficient to connect biomethane to our network.

We are launching new Assessment Windows that cluster projects, share reinforcement costs, and provide developers with the most efficient reinforcement solution.

These changes are underpinned by, subject to approval, Ofgem-backed charging rules, which reduces the contribution any single developer pays toward reinforcement.

Developers can join Assessment Windows in which we will assess projects in clusters, enabling shared solutions and lower costs. The process will be structured, transparent, and consistent across all regions.

This means lower barriers to entry and no longer paying all reinforcement costs alone. It provides predictable and fair costs, with clear rules on what’s shared and what’s not. It delivers structured timelines and process transparency, making planning easier.

In Ofgem’s Final Determination, they have shown significant support for biomethane connections by allowing £20m per regulatory network* to support costs associated with network reinforcement. This funding is expected to be made available as £4m/year over the five year regulatory period, with an individual cap of £2m per supported biomethane connection. Detailed arrangements will follow Ofgem’s review of our proposed changes to the charging methodology. These are the rules which will underpin how this funding can be allocated.

*Cadent has four regulated networks: North West, West Midlands, East of England and North London

We will be keeping customers updated throughout the new process with clear milestones and steps outlined from the start. In advance of the application window we will provide further guidance documentation relating to each stage of the entry reinforcement process. Following the Initial Optioneering Assessment, we will inform customers of which reinforcement option will be taken forward to a Reinforcement Assessment Study, and an indicative cost will be provided. On completion of the Reinforcement Assessment Study, a Connection Offer and Reinforcement Offer will be made alongside new updated contract agreements.

There will be a dedicated page on our website to access the application form and contact information if you need more support.

Cadent’s charging proposals are still pending Ofgem approval, however the funding pot has set a cap of £2m per biomethane connection. This will incentivise a clustered approach, as the more connections per reinforcement solution, the more funding that will be unlocked.

Any costs, including Capex and Opex above the allocated funding will need to be paid for by the customer. On completion of the reinforcement assessment, we will provide projects with cost estimates and the corresponding individual contribution.

Applications can be made anytime through our website: Reinforcement Application , and from January 5^th we will start processing and validating applications. The deadline to submit your application into the first window is Friday 6th March 2026, and payment must also be cleared by this date.

The inital fee for entering the reinforcement window is £2,000. On completion of the Initial Optioneering Study, customers will be presented with a reinforcement solution, indicative cost and timescales. To proceed with the Reinforcement Assessment Study, a further £15,300 will be due. On signing the reinforcement offer, these costs will be refunded off the contribution towards the reinforcement solution.

This is the first Assessment Window we have carried out, and we will aim to offer two each calendar year moving forward.

You will be registering your interest for entry reinforcement. The £2,000 fee is for you to be part of the window and receive analysis to see what clustered reinforcement solution could be provided, and what cost socialisation you could receive.

We will identify the least cost, fit for purpose reinforcement solution for your project, and undertake a Reinforcement Assessment Study for that solution if you wish to proceed at a cost of £15,300. At the end of that process you will be provided a connection offer and a reinforcement offer for your requested capacity on a constant flow rate.

A cluster is defined as a group of customers, who are competing for the same capacity and where required, would share the cost of any reinforcement solution, which unlocks or creates that capacity.

Yes. Our charging proposals, subject to Ofgem approval, include the provision for existing projects to apply for a reinforced connection to improve their year-round output or to increase their peak capacity.

Following your application submission and receipt of payment, our engineering teams will carry out an Initial Optioneering Assessment and provide the best reinforcement option for your project.

Following this process, we will share the output and discuss this with you. The identified reinforcement option will go through an internal sanctioning process to ensure it is the most effective, economic and efficient solution.

As with all infrastructure critical to the provision of system wide capacity to our customers, our current position is that we will build, own, operate and maintain these assets

This will be managed appropriately as part of the Assessment Window and reinforcement solutions outcome review. We will initially identify the reinforcement options required to meet all customers’ needs that have applied in that window. Where necessary, we will determine what is required without the customer that has walked away and discuss with remaining cluster partners any changes to the required reinforcement. The reinforcement solution and associated costs will be re-evaluated.

If you decide to step away before the connection offer is signed, then we will reassess the remaining parties in the cluster and you will have the option to be placed on a register that acts as a reserve list should you wish for us to contact you in the future about further clusters in this location.

The purpose of the register is to express interest in a future reinforcement window. This could be due to your project not yet being ready to proceed in time for the current window, or where today the cost of reinforcement is still unviable, and there is interest in waiting for future projects to join the cluster, which could bring that cost down.

No, if you’ve paid your application fee and want to be considered for future clusters rather than proceed at this time we will place you on the register and proactively be in touch if another party triggers a potential cluster.

We have completed standard design work for package reverse flow compressors to ensure build costs are kept to a minimum. During feasibility, Cadent will provide best case and worst-case costings for reinforcement, i.e. all projects in the cluster contributing vs your project alone Cadent will need to demonstrate it is spending any funding efficiently, and we will therefore pursue the least cost solutions, and drive for innovative and alternative solutions. Longer term we would expect reinforcement costs to be included within a network's overall efficiency incentive, providing a direct motivator to continually drive down costs and be exposed to inefficient costs.

At this stage, the selected reinforcement option will be taken forward with our delivery team to carry out a Reinforcement Assessment Study. This will provide an updated cost estimate with greater confidence and set out a timeline. It will consider such aspects as lead times for key materials, construction time and will include an assessment of the proposed site/s.

Our proposals, subject to Ofgem approval, require 50% of the reinforcement costs to be secured. This is to ensure only robust projects that are financially secure are included in the process. Where the connecting party does not meet the required Credit Rating, they will be required to provide financial security. Any costs above the cap will not need security as the developer will pay these in line with their individual contribution. We will publish the Credit Rating requirements in the Connection Charges Statement, and for consistency they will use those contained in the Uniform Network Code as a basis. Currently, for 50% of the liability, the UNC requires financial security if the credit rating is below A-/ A3 (Standard and Poors+Fitch/Moodys).

Additionally, customers must flow their full capacity as agreed in the connection offer within 24 months of the reinforcement solution being built to avoid becoming liable for the stranding cost.

We will build to need and therefore will not be prioritising sites. We anticipate varied gas to grid dates and will plan around this as the reinforcement stage gates will be transparent. Our process identifies the reinforcements required for everyone in that cluster so there is no need to prioritise. Anyone applying in a later cluster may have to wait for the reinforcements to be completed for earlier clusters, if they interact.

A customer changing their terms would need to bear the costs of their changes. Reducing their capacity would be treated as a partial termination and they may have to pay their share of the effective stranding/reconfiguration costs. Customers must flow their full capacity as agreed in the connection offer within 24 months of the reinforcement solution being built to avoid becoming liable for the stranding cost.

This will be in line with the Cadent Privacy Policy.

Any developer benefitting from a reinforcement solution will be required to pay a proportion based on peak entry capacities.

For already connected sites if they require reinforcement to flow above the current connection offer, they will need to come into the reinforcement process as applicable.

We have run feedback sessions on the new process, and at our London event in September we gathered vital feedback which we have assessed and embedded into our process. We recognise the importance of co-creation to ensure the process is suitable for the UK biomethane industry. We will also be constantly keeping our processes under review, bringing forward changes where necessary.

Cadent does not have any funding available to support blending in RIIO2 or RIIO3 business plans. Unlike SGN, which had a specific Price Control Deliverable (PCD), we do not possess such provisions. Additionally, our Use It Or Lose It (UIOLI) funding is limited, and using it for this purpose would necessitate prioritising certain customers over others, thereby creating an unfair advantage for those not benefiting from it.

We are also bound by our connection charging methodology which states that in all cases we will charge for any equipment installed to facilitate the connection or its operation.

However, we are willing to conduct the necessary analysis and feasibility studies to determine if a site can blend as part of our business-as-usual activities. Furthermore, we are ready to deploy blending infrastructure if third parties are prepared to fund it, acknowledging the substantial commercial benefits (including operational expenditure savings) for producers and the reduction in the overall carbon footprint of biomethane.

As part of the enhanced customer journey, we are working to improve the post commission aftercare service we provide and value your feedback in this area. Where a reinforcement solution has been delivered, we will establish protocols to communicate and coordinate outages to minimise any detrimental impact on the capacity availability. As with our connection offer today, 30 days’ notice will be given of any planned work needed to be undertaken.