Commercial clauses for energy lawyers

Introduction

This is an overview of the key content to be found in our Energy subtopic Commercial clauses for energy lawyers. It briefly explains the nature of this content and provides links to it.

Practice Notes

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Force majeure and frustration in offshore oil and gas drilling, decommissioning and service contracts in response to a significant market disruption provides guidance to offshore oil and gas industry participants who seek to rely on force majeure or frustration relief in relation to their offshore oil and gas drilling, decommissioning and service contracts, as a result of a significant market disruption, such as coronavirus (COVID-19). It provides an overview of force majeure and frustration under English law, includes practical considerations and steps in relation to claiming such relief, and analyses the application of relevant provisions in a sample of commonly used industry contracts
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Force Majeure in oil and gas contracts provides an overview of the main considerations which arise when drafting and negotiating a force majeure clause, focusing in particular on the issues which typically arise when considering such clauses within the oil and gas industry as well as on

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Latest Energy News

DESNZ publishes subsidy amount estimates for CfD Allocation Round 6

The Department for Energy Security and Net Zero (DESNZ) has published a document, outlining the subsidy amount estimates for Contracts for Difference (CfD) Allocation Round 6 (AR6) on the Subsidy Control Transparency Database. The estimates are based on the 'valuation formula' from the AR6 Allocation Framework, with indiviual projects rounded to the nearest £5m, while the total subsidy amount for the round is rounded to the nearest £5bn. DESNZ emphasises that actual subsidy amounts may vary from these estimates due to factors such as future wholesale prices and project-specific electricity generation.

DESNZ publishes consultation response on electricity networks land rights

The Department for Energy Security and Net Zero (DESNZ) has published the summary of responses to its August 2022 call for evidence on land rights and consents processes for electricity network infrastructure. The document outlines stakeholder feedback on several aspects of the current processes, including voluntary wayleaves, necessary wayleaves, and Section 37 consents. Key issues identified include delays, high costs, and inefficiencies in the existing system. In response, DESNZ established a Working Group to explore potential changes to land purchase and wayleave processes. Suggested improvements include introducing a Code of Practice, implementing alternative dispute resolution mechanisms, and standardising compensation rates. The government is now considering policy changes and intends to conduct further consultations as required, with the objective of facilitating the UK's ambition of achieving net zero power by 2030.

Ofgem approves MHHS Programme delay

Ofgem has approved Change Request CR055 for the Market-wide Half Hourly Settlement (MHHS) Programme, resulting in a 6.5-month delay to its implementation. To mitigate the risk of further delays, Ofgem has announced its intention to introduce a package of regulatory measures in early 2025. These proposed measures include issuing directions to Elexon and MHHS Participants, modifying the licences of supply and licensed distribution system operators, and revising the MHHS Governance Framework.

DESNZ publishes response to consultation on new technologies in the CM for 2024

The Department for Energy Security and Net Zero (DESNZ) has published the response to its open letter consultation on new technologies in the Capacity Market (CM) for 2024. The consultation aimed to identify emerging generating technologies, not currently classified as a Generating Technology Class, that could contribute to security of supply and potentially be eligible for future CM auctions. DESNZ received six responses, highlighting various technologies, including Vehicle-to-Everything (V2X), Offshore Hybrid Assets, smart transformers, Hydrogen-to-Power, flexible nuclear models, and Demand Side Response. DESNZ has committed to ongoing evaluation of these technologies with the National Electricity System Operator to ensure the CM evolves in line with the UK's energy security and clean power objectives. The next annual letter will be published in Autumn 2025.