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

DESNZ launches consultation on new PDR for small‑scale non‑domestic wind turbines in England

The Department for Energy Security and Net Zero (DESNZ) has launched a consultation on permitted development rights (PDRs) for onshore wind turbines in England, seeking views on introducing a new PDR for small scale, non-domestic wind turbines, defined as those with a maximum tip height of 30 metres and a rotor swept area of up to 200m², to support deployment of low impact renewable energy infrastructure. The consultation aims to enable businesses, farms and public sector organisations to reduce energy bills, improve energy independence and decarbonise operations through simplified planning requirements. DESNZ is not proposing changes to existing domestic PDRs or the introduction of new rights for repowering or community energy projects, citing the greater impacts and complexities these developments may present. It also seek views on whether larger or multiple turbines could be supported in certain contexts. The consultation closes on 10 June 2026.

DESNZ publishes UK fusion strategy 2026 policy paper and announces £45m AI supercomputer investment

The Department for Energy Security and Net Zero (DESNZ) has published its UK Fusion Strategy 2026, setting out a comprehensive national plan to accelerate the commercialisation of fusion energy and to strengthen the UK’s position as a global leader in the field. The strategy establishes a clear objective to accelerate the growth of the fusion industry by developing a globally competitive supply chain, advancing UK-based power plant design and systems integration capabilities, and demonstrating commercial viability through the Spherical Tokamak for Energy Production (STEP) prototype fusion plant. DESNZ indicates that this will be pursued in partnership with the private sector, with a view to capturing both near-term economic benefits, such as innovation and job creation and longer-term gains associated with a potential global fusion market estimated at between £3tn and £12tn.

Secretary of State approves nuclear justification for Rolls-Royce small modular reactor

The Department for Environment, Food & Rural Affairs (Defra) has announced that the Secretary of State for Environment, Food and Rural Affairs, Emma Reynolds, has approved nuclear justification for the Rolls-Royce small modular reactor (SMR) designed by Rolls-Royce SMR Ltd under the Justification of Practices Involving Ionising Radiation Regulations 2004, SI 2004/1769. The decision determines that the class or type of practice represented by the Rolls-Royce SMR technology is justified, as the expected benefits outweigh the potential health detriments and other associated risks. In particular, the decision cites socio-economic advantages manageable waste streams, acceptable environmental impacts and low safety and security risks. In reaching the decision, the Secretary of State considered the application submitted by the Nuclear Industry Association, responses to Defra’s December 2025 consultation and advice from statutory consultees.

DESNZ announces accelerated measures to boost UK energy security

The Department for Energy Security and Net Zero (DESNZ) has announced a package of measures aimed at strengthening and accelerating efforts to improve national energy security in response to events in the Middle East. DESNZ has confirmed that the UK will introduce ‘plug-in solar’ for the first time in the UK. DESNZ intends to bring forward the next annual renewables auction to July 2026 and confirmed that the government will implement the recommendations of the Fingleton Review to help accelerate the construction of nuclear power stations. It also confirmed that it has taken steps to protect consumers by working with the Competition and Markets Authority (CMA) to prevent unfair practices, such as price gouging.