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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
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