UK DESNZ

UK Strengthens Ofgem Consumer Protection Powers

The UK government has announced reforms to Ofgem's regulatory remit, the first major update since the regulator was founded in 2000. The changes grant Ofgem direct powers to enforce consumer law without going through courts and authority to ban energy executive bonuses for rule violations. The reforms aim to position Ofgem as a stronger consumer champion across all segments of the energy market.

Heat Pump Ready Programme Round 2 Innovation Funding Competition

DESNZ has published the Heat Pump Ready Programme Round 2 innovation funding competition, releasing draft guidance and supporting bid documentation. The programme invites applications from organisations developing heat pump technologies and related innovations. Multiple template forms are available including declaration forms, claim procedures, and milestone progression plans.

UK Raises Electricity Generator Levy From 45% to 55% to Break Gas-Electricity Price Link

The UK government announces measures to break the link between volatile international gas prices and domestic electricity costs. The Electricity Generator Levy is raised from 45% to 55%, taking immediate effect, with voluntary long-term fixed-price contracts offered to low-carbon generators covering approximately a third of Britain's power supply. The measures aim to shield households and businesses from fossil fuel price shocks while accelerating the clean energy transition.

DESNZ Opens CCUS Pathfinder Applications for ECC Teesside

The Department for Energy Security and Net Zero (DESNZ) has opened the NPT Pathfinder selection process for non-pipeline transport CCUS projects seeking connection to the ECC Teesside network by 2032. The programme publishes application guidance, project plan templates, cost assessment forms, and financial statement requirements for prospective applicants. This notice applies to power CCUS, industrial carbon capture, hydrogen, greenhouse gas removal, and power BECCS project types.

Reformed National Pricing Delivery Plan Replaces REMA

The Department for Energy Security and Net Zero has published the Reformed National Pricing (RNP) delivery plan, which will replace the Review of Electricity Market Arrangements (REMA). The plan outlines electricity market reforms covering siting and investment levers, constraints management, and balancing and settlement reforms aimed at reducing system costs and improving efficiency. A consultation on reforms to siting and investment levers is open until 11.59pm on 2 June 2026.

Transitional Energy Certificates Criteria Published 21st Apr

DESNZ has published criteria for Transitional Energy Certificates (TECs), a scheme announced in the North Sea Future Plan to support the management of existing oil and gas fields through their remaining productive lifetimes. The publication provides the qualifying criteria that applicants must meet to receive a TEC.

Reformed National Pricing: Consultation on Siting and Investment Levers

DESNZ has launched an open consultation on proposed reforms to electricity market siting and investment levers under the Reformed National Pricing (RNP) programme, which succeeds the Review of Electricity Market Arrangements (REMA). The consultation, published 21 April 2026, closes at 11:59pm on 2 June 2026 and seeks views on implementation of siting and investment lever reforms described in Chapter 2 of the RNP Delivery Plan. Stakeholders may respond online via Citizenspace.

The Era of Clean Energy Security

UK Energy Secretary Ed Miliband delivered a policy speech arguing that recent fossil fuel price shocks demonstrate the UK must accelerate its transition to clean energy. The government cited signed contracts for small modular reactors, consent for the UK's largest solar project, and historic hydrogen and wind investments as evidence of its commitment. The speech positions clean energy as essential for energy security, national security, and economic growth, while rejecting calls to either phase out North Sea production immediately or expand fossil fuel drilling as solutions to price volatility.

Small Modular Reactor Programme Business Case Summary

DESNZ published a summary of the Small Modular Reactor (SMR) programme business case for Great British Energy – Nuclear (GBE-N). The document provides a high-level outline of programme strategy, commercial approach, and expected economic and system benefits. Published April 15, 2026.

Retrofit System Reform Advisory Panel: Terms of Reference

The UK Department for Energy Security and Net Zero has established the Retrofit System Reform Advisory Panel to advise ministers on reforming consumer protection and oversight for home retrofit installations. The panel will focus on simplifying standards and protections, developing a redress system for substandard work, and supporting the retrofit supply chain. An April 2026 update added Chris Hewett, Chief Executive of Solar Energy UK, to the membership list.

UK ETS Auctions and Secondary Market Participation Guide

DESNZ has published updated guidance on participating in UK Emissions Trading Scheme markets, including auction procedures and secondary market trading. The Auction Reserve Price was adjusted from £22 to £28 effective for the April 8, 2026 auction. Cost Containment Mechanism trigger prices and average monthly prices are updated regularly. The guidance provides background on UK ETS markets and links to related scheme participation information.

Contracts for Difference (CfD) Allocation Round 7: Subsidy Control Transparency Database Estimates

DESNZ has published estimates of subsidy amounts for Contracts for Difference Allocation Round 7 on the Subsidy Control Transparency Database. The estimates relate to renewable energy projects receiving CfD support. Developers and investors in CfD-funded projects should monitor these transparency estimates.

UKAEA Launches Fusion Diagnostics Centre of Excellence

UKAEA has launched the Diagnostics Innovation Centre of Excellence (DICE) at its Culham Campus in Oxfordshire to develop advanced measurement technology for fusion energy. The centre leverages decades of UK experience in fusion diagnostics from machines including JET and MAST Upgrade. DICE has already secured contracts worth over £10 million with 10 organisations and will serve as a hub for collaboration between UK industry, international fusion partners, and other sectors including medical research.