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

NESO launches consultation on CSNP methodology

The National Energy System Operator (NESO) has launched a consultation on its proposed Centralised Strategic Network Plan (CSNP) methodology. The methodology sets out an integrated approach to electricity, gas and hydrogen transmission network planning beyond 2030, aiming to support the UK’s 2050 net zero target. The CSNP will provide a 25-year roadmap, identifying where future transmission network infrastructure will be needed across Great Britain to transport energy from generation sites to areas of consumption. It will cover both onshore and offshore electricity networks, cross-border interconnectors, offshore hybrid assets, the repurposing of the onshore gas transmission system, and future hydrogen infrastructure requirements. The CSNP will be reviewed every three years to align with evolving energy transition needs. The consultation closes on 1 August 2025.

MHCLG and DESNZ launch consultation on MEES for social housing

The Ministry of Housing, Communities and Local Government (MHCLG) and Department for Energy Security and Net Zero have launched a consultation on new minimum energy efficiency standards (MEES) for socially rented homes. The proposal sets the standard at Energy Performance Certificate (EPC) C or an equivalent rating by 2030. Currently, socially rented homes are not required to meet a minimum EPC standard, with existing requirements roughly equivalent to an EPC Band F rating. The proposed MEES will form part of the revised Decent Homes Standard (DHS) under Criterion D on thermal comfort, which MHCLG is also consulting on. The consultation closes on 10 September 2025 and includes a call for evidence on decarbonisation plans.

Ofgem publishes decsion on commercial framework for Early Competition

Ofgem has published its decision on the commercial framework for Early Competition in onshore electricity transmission. The framework sets out how Competitively Appointed Transmission Owners (CATOs) will finance, build, and operate transmission assets. It includes key elements such as a post-award security obligation capped at £50m for projects up to £1bn, a 35-year revenue period, and a 98% availability target. The framework implements provisions of the Energy Act 2023 (EnA 2023) and will be incorporated into the CATO electricity transmission licence. Further consultation on specific implementation details is expected later in 2025.

Commission consults on extension of EU CBAM to downstream products

The European Commission has launched a consultation on extending the EU Carbon Border Adjustment Mechanism (EU CBAM) to downstream products and implementing additional anti-circumvention measures. The initiative aims to address carbon leakage risks where EU producers might relocate production abroad or EU buyers switch to imports from countries with weaker climate policies. The proposed regulation would supplement the existing EU CBAM Regulation (EU) 2023/956, with final adoption planned for the fourth quarter of 2025. The consultation period runs from 1 July to 26 August 2025.

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