International Oil & Gas

Energy weekly highlights—31 July 2025

This week's edition of Energy weekly highlights covers several announcements from Ofgem, including: (1) its decision approving Capacity Market (CM) Rules change proposal CP388, following a statutory consultation launched on 27 June 2025; (2) a consultation on proposed licence conditions to implement the RIIO-3 price control settlement for the electricity transmission, gas transmission and gas distribution sectors; and (3) a call for input seeking views on whether there are fairer and more efficient ways to allocate and recover energy system costs, including looking at a range of potential alternative pricing models for consumers. In addition this week, the Department for Energy Security and Net Zero (DESNZ) published the final versions of the Contracts for Difference (CfD) Standard Terms and Conditions (ST&Cs) and associated documents for Allocation Round 7 (AR7) and the National Energy System Operator (NESO) has extended the notice period for the closure of the one-off 'Gate 2 Whole Queue' exercise.

NSTA publishes new policy on company specific information disclosure

The North Sea Transition Authority (NSTA) has published a new policy on company specific information disclosure, following its 2024 transparency consultation. Under the policy, companies will now be identified at the outset of investigations into suspected regulatory breaches, instead of being named only once sanctions are imposed. It also establishes new transparency measures for decommissioning obligations, including the annual publication of a decommissioning performance table detailing operators' outstanding commitments.

Ofgem publishes final RIGs for DCC Successor Licensee

Ofgem has published the final Regulatory Instructions and Guidance (RIGs) for the Successor Licensee of the Smart Meter Communication Licence. This follows its June 2025 consultation, conducted as part of the ongoing review of the Data Communications Company (DCC)'s regulatory framework ahead of the current licence's expiry in September 2027. The RIGs will support the implementation of the first ex-ante cost control cycle for the DCC Successor Licensee. Key changes include: (1) a shift from ex-post to ex-ante reporting; (2) the introduction of service families and budget ringfencing; and (3) the inclusion of uncertainty mechanisms, among other updates.

Ofgem launches call for input on future approach to energy system cost allocation and recovery

Ofgem has published a call for input seeking views on whether there are fairer and more efficient ways to allocate and recover energy system costs, including looking at a range of potential alternative pricing models for consumers. The review forms part of Ofgem’s work to support the transition to a cleaner, more secure and resilient energy system as the make-up of system costs changes due to reduced reliance on fossil fuels and increased investment in infrastructure. It plans to explore how costs can be shared to support smarter and more efficient energy use, improve protections for consumers and contribute to decarbonisation and economic growth.