Oil and gas licensing and regulation

Introduction

This is an overview of the key content to be found in our Oil and gas licensing and regulation subtopic. It briefly explains the nature of this content and provides links to it.

For more information on Corporate oil and gas transactions, see our subtopic: Corporate oil and gas transactions—overview.

Policy

•
Practice Note: The Energy White Paper—an overview [Archived] considers some of the key measures announced in the Energy White Paper published by the former UK Department for Business, Energy & Industrial Strategy (BEIS) on 14 December 2020 and their expected impact on the energy sector. It also provides a comprehensive overview of all commitments announced. The Department of Energy Security and Net Zero (DESNZ) was established on 7 February 2023 and has taken over the energy portfolio of the former BEIS, which no longer exists.

Oil and gas licensing and regulation—licensing and regulation

•
Practice Note: Industry Bodies and Codes—Oil & Gas brings together in one place direct links to some of the key industry bodies, industry codes and licences and industry guidance and other publications published in respect of the oil and

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Energy News

DESNZ confirms adjustments to CM auction parameters for 2025-26 and 2028-29

The Department for Energy Security and Net Zero (DESNZ) has published a letter to the National Energy System Operator (NESO), confirming adjustments to the Capacity Market (CM) auction parameters. These adjustments apply to the one-year ahead (T-1) auction for the delivery year 2025 to 2026 and the four-year ahead (T-4) auction for the delivery year 2028 to 2029. For the T-1 auction, the target has been increased to 7.5 GW, while the T-4 target has been set at 43.7 GW, with an additional 1.0 GW set aside for a future auction.

NESO proposes new CUSC modification to support connections queue

The National Energy System Operator (NESO) has proposed a new Connection and Use of System Code (CUSC) modification to introduce a Progression Commitment Fee aimed at supporting the future connections queue. This proposed fee, subject to a defined activation trigger, would apply to generation projects in the Gate 2 queue that have not yet submitted applications for planning consent. Initially set at £2,500/MW, the fee would increase by £2,500/MW every six months, up to a maximum of £10,000/MW. It would be payable upon project termination or capacity reduction, incentivising developers to regularly assess project viability. The modification has been submitted for code review before final consideration and approval by Ofgem.

Ofgem publishes letter to NESO on scope of transitional Regional Energy Strategic Plan

Ofgem has published a letter to the National Energy System Operator (NESO), outlining its expectations for the scope and development of the transitional Regional Energy Strategic Plan (RESP). The letter details the expected outputs, along with the proposed development approach, timeline, and governance arrangements for delivering the plan. Ofgem expects a transitional RESP plan for each RESP region, ensuring coherence across plans and alignment with national and regional energy planning priorities, among other aspects. The timeline includes Phase 1 scoping work, including pathway methodology, in Q1 2025, a public consultation on draft transitional RESP outputs in in September 2025, and final outputs due in January 2026. Ofgem will publish its decision on the RESP methodology policy framework in spring 2025. Additionally, a governance structure will be established to oversee the development of the transitional RESP product, with regular senior steering meetings to monitor progress and address issues.

DESNZ publishes consultation response on transitional support for large-scale biomass electricity generators

The Department for Energy Security and Net Zero (DESNZ) has published the response to its January 2024 consultation on potential transitional support arrangements to facilitate the transition of large-scale biomass electricity generators to power bioenergy carbon capture and storage (BECCS). After reviewing stakeholder feedback and advice from the National Energy System Operator, the government has decided to implement a short-term support mechanism for these generators from 2027. This decision recognises that the continued operation of biomass plants will enhance security of supply by providing low-carbon, dispatchable electricity to the grid. DESNZ also plans to establish an independent review to consider how options for greenhouse gas removal, including large-scale power BECCS and direct air carbon capture and sequestration, can help the UK achieve its net zero targets and ensure security of supply through 2050.