GB electricity and gas supply/retail regulation

Introduction

This is an overview of the key content to be found in our GB electricity and gas supply/retail 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, see: Overarching GB gas and electricity market regulation—overview.

GB electricity and gas supply/retail regulation—content

Climate Change Levy

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Practice Note: Climate change levy outlines the requirements for compliance with the climate change levy (CCL), under the Finance Act 2000 and associated regulations, including looking at taxable supplies, taxable commodities, carbon price support, registration requirements, exemptions and consequences of evasion, tax supply or tax point, the relevant accounting period, record keeping and VAT and the CCL. For more detail on carbon pricing in the context of energy more generally, see the Carbon emissions from power generation and Carbon Capture and Storage (CCS)—overview subtopic

Competition and Procurement

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Practice Note: Competition law and energy outlines the energy regulatory framework and explores recent competition law developments in relation to the energy sector, including in relation

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Latest Energy News

OTC, WindEurope and HyNOS outline next steps for coordinated offshore energy planning in the Northern Seas

The Offshore Transmission System Operators Cooperation (OTC), together with WindEurope and the Hydrogen Networks of the Northern Seas (HyNOS), has published a Cooperation Paper setting out an integrated framework for regional planning of cross-border offshore energy infrastructure. The paper proposes practical steps to align electricity grid, wind, and hydrogen network planning in the Northern Seas, fostering a unified European approach to offshore energy system design. It emphasises the need for structured stakeholder interfaces, joint scenario development, and cost-benefit assessment processes that link transmission operators, offshore wind developers, and commercial infrastructure investors.

NESO launches call for input to address rising demand connection applications

The National Energy System Operator (NESO) has launched a Call for Input (CfI) in response to a recent increase in transmission-level demand connection applications, which has far exceeded even the most ambitious of previous forecasts. The CfI forms part of a broader initiative, developed in collaboration with government and Ofgem, to support the management of the demand queue following the TMO4+ grid connection reforms approved earlier this year. NESO’s transmission-related CfI opened on 6 November 2025 and is directed at customers with existing transmission-level demand connection agreements, as well as those with generation agreements that include demand technologies (such as co-located sites). NESO is seeking updated information on project characteristics, including connection status, timelines, financial readiness and maturity.

Ofgem sets out actions to manage surge in electricity demand connection applications

Ofgem has published an update document in connection with the TMO4+ grid connection reforms, responding to a sharp rise in demand connection applications at both transmission and distribution level since November 2024, The rise in demand applications risks delaying viable, strategically important demand projects from connecting to the grid in a timely way. Working with government, the National Energy System Operator (NESO) and network companies, Ofgem has outlined regulatory options to curate a more viable demand queue, enable faster connections and prioritise strategic demand projects.

Council approves interim emissions reduction target of 90% for 2040

The Council of the European Union has reached an agreement to amend the European Climate Law (ECL) by introducing a binding intermediate target for 2040, requiring a 90% reduction in net greenhouse gas (GHG) emissions compared to 1990 levels. This target is a key step in the EU’s efforts toward achieving climate neutrality by 2050 and will guide future Commission legislative proposals. The amendment also outlines areas of flexibility and key elements for both the 2040 target and the post-2030 climate framework, ensuring that the transition supports member states and industry. These provisions aim to steer upcoming legislation in a way that balances ambition with economic resilience, providing flexibility to help achieve the 2040 target while supporting European citizens and businesses throughout the transition.