Energy weekly highlights—17 July 2025
This week's edition of Energy weekly highlights includes: a News Analysis on energy aspects of the UK-EU Common Understanding, agreed between the UK government and the EU Commission in May 2025. In addition this week, the National Energy System Operator (NESO) has extended the evidence submission window for the one-off ‘Gate 2 Whole Queue’ (G2WQ) exercise by at least five working days beyond the original deadline of 29 July 2025, following reports by customers of issues using its online Connections Portal. We also cover important updates from the Department for Energy Security and Net Zero (DESNZ) in relation to the Contracts for Difference (CfD), Capacity Market (CM) and low carbon hydrogen subsidy regimes, namely: (1) its final response to the February 2025 consultation on proposed reforms for Allocation Round 7 (AR7), following its initial response released in May 2025; (2) publication of a letter to NESO setting out the parameters for the upcoming CM auctions, including the volume of capacity to be secured in the T-1 auction for the 2026–27 Delivery Year; and (3) launch of a consultation on proposed changes to the economic regulatory framework for 100% hydrogen pipeline networks. Finally, Ofgem has launched a consultation on proposed licence modifications to support implementation of Regional Energy Strategic Plans (RESP), following its April 2025 decision on the RESP policy framework.