GB electricity generation and storage regulation

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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, including in respect of electricity generation and storage regulation, of the former Department for Business, Energy and Strategy (BEIS), which no longer exists.

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Latest Energy News

Commission opens feedback on EU climate resilience regulation proposal

The European Commission has launched a call for evidence for a proposed regulation to establish an integrated framework for climate resilience and risk management across the EU. The initiative aims to help member states respond more effectively to increasing climate risks, as Europe warms at twice the global average. Stakeholder feedback will inform the regulation’s development, which is part of the European Green Deal. The consultation period will run from 24 July 2025 until 04 September 2025.

DESNZ publishes final CfD AR7 ST&Cs

The Department for Energy Security and Net Zero (DESNZ) has published the final versions of the Contracts for Difference (CfD) Standard Terms and Conditions (ST&Cs) and associated agreements for Allocation Round 7 (AR7). The documentation package includes the main ST&Cs, a generic agreement, phase-specific agreements for both single and apportioned metering, a private network agreement, and terms for unincorporated joint ventures. Each CfD contract issued under AR7 will comprise two parts: a specific front-end CfD Agreement and the ST&Cs. The generic CfD Agreement contains project-specific information that tailors the application of the ST&Cs.

Ofgem publishes decision on Capacity Market Rules change proposal CP388

Ofgem has published its decision approving Capacity Market (CM) Rules change proposal CP388, following a statutory consultation launched on 27 June 2025. The approved change allows Transmission Network connected New Build CM Units that have requested a connection date advancement through the TMO4+ process to conditionally prequalify for the 2029/30 T-4 Auction. Ofgem modified the original proposal by reducing the deadline for submitting Grid Connection Agreements to 16 working days before the first bidding round and permitting the submission of unsigned agreements. These changes will take effect from the opening of the 2025 prequalification submission window and will apply solely to the 2029/30 T-4 Auction.

DESNZ launches consultation on consumer-led flexibility engagement framework

The Department for Energy Security and Net Zero (DESNZ) has launched a consultation seeking views on approaches to improve consumer engagement in consumer-led flexibility (CLF). The consultation seeks to clarify the roles of government and other organisations in optimising consumer engagement with CLF initiatives. It proposes four potential scope components for a consumer engagement framework: industry coordination and standards, as well as consumer advice and communications. The framework aims to maximise CLF's contribution towards achieving clean power by 2030 and net zero by 2050, while ensuring consumer needs are addressed. The consultation closes on 19 September 2025.

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