GB electricity and gas networks and connections regulation

Introduction

This is an overview of the key content to be found in our GB electricity and gas networks and connections 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.

GB electricity and gas networks and connections regulation—content

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Practice Note: The Energy White Paper—an overview [Archived], which has been archived and is no longer maintained, considers some of the key measures announced in the Energy White Paper published by the former UK Department for Business, Energy & Industrial Strategy (BEIS) on 14 December 2020 and their expected impact on the energy sector. It also provides a comprehensive overview of all commitments announced. The Department of Energy Security and Net Zero (DESNZ) was established on 7 February 2023 and has taken over the energy portfolio of the former BEIS, which no longer exists

Transmission and distribution

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Latest Energy News

Ofgem modifies DCC Smart Meter Licence for ex-ante control transition

Ofgem has published a decision, announcing modifications to the Smart Meter Communication Licence as part of its ongoing review of the regulatory framework for the Data Communications Company (DCC), ahead of the licence’s expiry in 2027. The decision follows Ofgem’s statutory consultation published in May 2025 and aims to support Ofgem’s policy conclusions on the transition to a new cost control regime, while supporting the administration of the final Price Control at the end of the licence term. Key modifications include: (1) implementing the ex-ante process for determining DCC’s Allowed Revenue under the Successor Licence; (2) amending dates for certain reporting requirements, including the Price Control submission, to align with the Transfer Date; (3) amending the Baseline Margin Adjustment and External Contract Gain Share mechanisms; and (4) making minor technical and housekeeping changes.

Luciano Lliuya v RWE AG

Environment analysis: After almost a decade of litigation, on 28 May 2025, the final judgment on Luciano Lliuya v RWE AG (2015) Case No 2 O 285/15 was handed down by the Higher Regional Court (Oberlandesgericht, OLG) of Hamm Germany. In this landmark civil climate change ruling the court held that while there needs to be a causal chain between the actions of the defendant and risk of damage to the claimant, single entities may have a responsibility for impacts relating to their greenhouse gas (GHG) emissions. Although RWE successfully defended the claim, the court established important legal principles for climate litigation which has significance for large companies. In summary, the court held that individual entities that emit GHG can, in principle, be held accountable for the impacts of their emissions under German civil law. Written by Tallat Hussain, partner, Amber Davies, associate and Grace Durnall, trainee in the Energy and Natural Resources at Reed Smith LLP.

Commission launches Hydrogen Mechanism under EU Energy and Raw Materials Platform

The European Commission has launched the Hydrogen Mechanism, the first operational component of the EU Energy and Raw Materials Platform. The mechanism, established under Regulation EU/2024/1789 on the internal markets for renewable gas, natural gas and hydrogen, aims to support the market development of renewable and low-carbon hydrogen, as well as its derivatives, including ammonia, methanol and electro-sustainable aviation fuel, until the end of 2029. The online platform will host various mechanisms covering hydrogen, raw materials, natural gas and biomethane, with the potential to include additional products in the future. Registration is now open for stakeholders, with the first supply-demand matching round scheduled for September 2025.

Commission publishes new waste battery recycling calculation rules

The European Commission has published a delegated regulation effective from 24 July 2025, establishing new methodologies for calculating recycling efficiency and material recovery from waste batteries. This regulation, which underpins the EU’s green transition and the goal of achieving climate neutrality by 2050, provides clear guidelines for recyclers handling lead-acid, nickel-cadmium, lithium, and other batteries. It sets specific recycling efficiency targets—75% for lead-acid, 65% for lithium-based, 80% for nickel-cadmium, and 50% for other batteries by December 2025, increasing to 80% for lead-acid and 70% for lithium-based batteries by 2030. In addition, the regulation mandates ambitious material recovery targets for critical raw materials, requiring a 90% recovery for cobalt, copper, lead, and nickel, and 50% for lithium by December 2027, with further increases to 95% and 80% respectively by December 2031. It also establishes harmonised documentation requirements for recyclers reporting to member states, thereby aiming to prevent unfair competition within the EU's secondary raw materials market.