GB electricity generation and storage regulation

Introduction

This is an overview of the key content to be found in our GB electricity generation and storage regulation subtopic. It briefly explains the nature of this content and provides links to it. For details of our content providing a more general overview of how the GB energy market fits together, and its licensing regime, see the Overarching GB gas and electricity market regulation subtopic.

The Department for Energy Security and Net Zero (DESNZ) was established on 7 February 2023 and has taken over the energy portfolio of the former Department for Business, Energy and Strategy (BEIS), including in respect of electricity

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Latest Energy News

DfT launches consultation on proposals to support transition to ZEVs

The Department for Transport (DfT) has launched a consultation, seeking views on proposals supporting the UK's transition to zero emission vehicles (ZEVs). The consultation is divided into two parts. The first, conducted solely by the UK government, focuses on phasing out the sale of new petrol and diesel cars from 2030. It seeks input on ending the sale of new internal combustion engine cars from 2030, potential requirements for new non-zero emission vans to be sold from 2030 to 2035, considerations for small volume manufacturers, and measures to support ZEV uptake. The second part, conducted in collaboration with devolved administrations, examines the ZEV Mandate, delivered though vehicle emissions trading schemes. It seeks views on existing flexibilities and potential technical updates to the Mandate, which will inform future amendments to the Mandate and CO2 emissions regulation. The consultation closes on 18 February 2024.

NESO submits connections reform proposals to Ofgem

The National Energy System Operator (NESO) has submitted a series of connections reform proposals to Ofgem, including Code Modifications CMP434, CMP435, and CM095, along with three proposed connections reform methodologies. If approved, these reforms will prioritise projects based on readiness and alignment with the government's Clean Power 2030 (CP30) Action Plan 2030, introduce new delivery requirements, and eliminate stalled projects from the queue. Ofgem is expected to make a decision on these proposals in Q1 2025. Subject to approval, these changes, along with associated licence modifications, will facilitate the implementation of a reformed connections process starting in May 2025. An evidence submission window will open in Q2 2025, providing project developers in the current queue a minimum of two weeks to submit a Gate 2 declaration/application. NESO will then review submissions and work with network companies to establish the new connections queue via the ‘Gate 2 to Whole Queue’ exercise. NESO plans to begin issuing Gate 1 offers from Q2 2025 and aims to issue Gate 2 offers as soon as possible in 2025.

ACER issues opinion on rules for European Network of Network Operators for Hydrogen

The Agency for the Cooperation of Energy Regulators (ACER) has issued its Opinion on the draft statutory documents for the European Network of Network Operators for Hydrogen (ENNOH). ACER has welcomed the draft documents but suggested enhancements to support ENNOH's establishment. The agency emphasised the importance of the timely transposition of certification provisions from the Hydrogen and Decarbonised Gas Market Directive by Member States. ACER's Opinion now awaits the European Commission's response, which is due by 20 March 2025. If favourable, future hydrogen transmission network operators will have until 20 June 2025 to adopt and publish the statutory documents.

DESNZ launches call for evidence on Ofgem review

The Department for Energy Security and Net Zero (DESNZ) has launched an in-depth review of Ofgem, launching a call for evidence to seek feedback on Ofgem's role in supporting an innovative energy market that benefits consumers. The review will examine Ofgem’s mandate, consumer protection powers, its scope and remit, standard-setting processes, and redress mechanisms. Key proposals include shortening complaint response times, strengthening the energy ombudsman, and expanding automatic compensation schemes. The review will also consider Ofgem's role in approving infrastructure projects. Ofgem has welcomed DESNZ's review, viewing it as an opportunity to explore new regulatory approaches, potentially including powers similar to those of the Financial Conduct Authority. The call for evidence closes on 28 February 2025.