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NEWS
The Department for Energy Security and Net Zero (DESNZ) has published guidance for operators within the UK Emissions Trading Scheme (UK ETS) regarding the 2025 baseline data collection and applications for the Hospital or Small Emitter (HSE) and Ultra-Small Emitter (USE) scheme status. The guidance outlines that all UK ETS installation operators must submit their baseline data to their regulator between 1 April and 30 June 2025. Non-compliance will result in operators not receiving free allocation for the 2027-30 period, and potentially for 2026. The same submission window applies for HSE/USE status applications for 2026-30. DESNZ has also published a baseline data report template and guidance documents (UKETS12 and UKETS13) to assist operators in meeting these requirements, subject to review following the Free Allocation Review outcome.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published guidance identifying UK offshore installations that have been assigned United Nations Codes for Trade and Transport Locations (UN/LOCODEs) for use in the UK Emissions Trading Scheme (UK ETS). The guidance sets out a list of offshore installations and their corresponding UN/LOCODEs, which are administered internationally by the United Nations Economic Commission for Europe (UNECE).
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published its guidance for domestic energy suppliers on the implementation of mandatory tariff reductions from 1 April 2026, following the government’s commitment in the 2025 Autumn Budget to reduce average household energy bills by around £150. The guidance explains how suppliers must apply discounts to domestic electricity and gas tariffs arising from two policy changes: (1) the introduction of the Renewables Obligation (RO) to Exchequer scheme, under which 75% of domestic RO costs are removed from electricity bills and replaced with Exchequer funding, and (2) the closure of the Energy Company Obligation (ECO4) and Great British Insulation Scheme (GBIS), with associated savings required to be passed through to consumers. These obligations are imposed through the RO and ECO Costs Schemes Direction 2026, made under section 22(1)(b)(iv) of the Energy Prices Act 2022, which requires domestic suppliers to adjust tariffs from 1 April 2026 and, in the case of electricity suppliers, provides for Exchequer payments to replace foregone RO revenues.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published guidance which sets out how operators of low-level radioactive waste (LLW) disposal sites can apply for exemption from Nuclear Third Party Liability (NTPL) under the Nuclear Installations Act 1965 and the 2025 Regulations. This exemption, known as the Low Level Waste Exclusion, applies to sites that pose minimal risk of a nuclear occurrence. To qualify, operators must demonstrate compliance with four conditions: holding an environmental permit with strict radioactivity limits, maintaining a compliant site history, ensuring off-site radiation doses remain below 1 millisievert per year and confirming that criticality incidents cannot occur. Evidence such as environmental permits, safety assessments and dose evaluations must be provided.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published guidance to support local authorities and communities to tackle climate change. The guidance details the various government programmes aimed to decarbonise. The Local Net Zero Hubs programme supports local authorities to develop net zero projects and attract commercial investment. Additionally, the Local Net Zero Accelerator programme provides £19m funding for local government to secure long-term sustainable private investment. A Local Net Zero Forum online platform has also been established to provide information to assist councils in developing net zero projects. The Community Energy Fund supports rural and urban communities to access funding which is used to develop local renewable energy projects.
NEWS
DESNZ has published the Independent Review of Greenhouse Gas Removals (GGRs), chaired by Dr Alan Whitehead CBE, assessing how removal technologies can help the UK meet its 2050 net-zero target.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published the Initial Clean Industry Bonus (CIB) Budget Notice for Contracts for Difference (CfD) Allocation Round 8 (AR8), confirming an initial CIB budget of £200 million. DESNZ notes that the budget may be revised in the final budget notice. The notice is issued pursuant to regulation 13A of the Contracts for Difference (Allocation) Regulations 2014, SI 2014/2014 and paragraph 16.2 of the Contracts for Difference Scheme for Renewable Electricity Generation Allocation Round 8: Clean Industry Bonus Allocation Framework 2026, and is addressed to National Energy System Operator Limited and Low Carbon Contracts Company Limited.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published its initial response to the February 2025 consultation on proposed reforms for Allocation Round 7 (AR7) of the Contracts for Difference (CfD) scheme. The response addresses regulatory changes to be implemented before AR7 opens in Summer 2025. These include: (1) amending the budget publication process to allow the Contract Budget Notice to be published later in the allocation round, rather than ten working days before the application window opens; (2) permitting the Secretary of State for Energy Security and Net Zero to request anonymised bid information—such as bid prices and capacities—from the National Energy System Operator before finalising the budget; and (3) amending the Clean Industry Bonus (CIB) regulations to allow CIB costs to be included in the price cap methodology. DESNZ intends to publish a final response focusing on non-legislative reforms before AR7 opens.
NEWS
The Department for Energy Security and Net Zero (DESNZ) and the Department for Business, Energy and Industrial Strategy have published an interim response to the 2019 and 2021 consultations on non-domestic Minimum Energy Efficiency Standards (MEES) in England and Wales. The response confirms that private rented buildings over 1,000 square metres will be required to achieve Energy Performance Certificate (EPC) B from 2031, where cost effective, while smaller buildings will remain subject to the existing EPC E minimum standard. The proposed 2027 EPC C interim milestone will not proceed. Existing flexibilities, including the seven-year payback test and exemptions, will be retained. DESNZ estimates tenant bill savings of up to £360 million per year by 2031 for larger non-domestic buildings. DESNZ states that the changes will require secondary legislation, with a full government response and updated guidance to follow.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published an interim response to its consultation on gas security of supply during the transition to net zero, confirming that further analysis is needed before final policy decisions are made. The consultation, which ran from 26 November 2025 to 18 February 2026, examined future gas supply and demand scenarios from 2030–50 and received 115 responses. The government states that respondents broadly supported the priorities of maintaining sufficient gas infrastructure capacity, ensuring resilience to unplanned outages and developing commercial models that allow infrastructure to operate, with many respondents considering that the market alone is unlikely to deliver these outcomes. DESNZ intends to continue work on easing regulatory barriers, exploring potential commercial support to retain existing capacity and considering support for additional import or flexibility capacity, including a floating storage and regasification unit and/or strategic gas storage reserve, before publishing a full response setting out its minded to position.
NEWS
The Department for Energy Security and Net Zero (DESNZ) and the Office of Gas and Electricity Markets (Ofgem) have published a joint open letter setting out expectations for the next phase of the Connections Reform programme, which supports the Government’s Clean Power 2030 target. Signed by Minister, Michael Shanks, and Ofgem Director, Eleanor Warburton, the letter outlines the responsibilities of network companies and the National Energy System Operator (NESO) in delivering timely, high-quality grid connections that meet developer needs and enable economic growth.
NEWS
The Department for Energy Security and Net Zero (DESNZ) has published a letter from the Secretary of State for Energy Security and Net Zero, Ed Miliband, to the National Energy System Operator (NESO). The letter sets out the parameters for the upcoming Capacity Market (CM) auctions, including the volume of capacity to be secured in the T-1 auction for the 2026–27 Delivery Year and the T-4 auction for the 2029–30 Delivery Year, as well as interconnector de-rating factors for the T-4 auction. The T-1 and T-4 auctions are set to take place in March 2026.