Review of OFGEM announced:
On 19 December 2024, Department of Energy Security and Net Zero (DESNZ) announced a review of OFGEM, to improve the retail market.
What does this mean to the end user?
- The first step is a call for evidence to inform the energy regulator’s role and responsibilities
- DESNZ is asking for views on whether OFGEM’s mandate and scope are appropriate and whether it has the right powers to protect consumers
Consultation on support for Electric Vehicle (EV) transition:
The Department for Transport has opened a consultation on the phase out of fossil-fuelled vehicles in the UK.
- The consultation proposes reinstating the phase out date for new internal combustion engine cars to 2030 and for vans to 2035.
- It asks for views on how this policy should be designed and provides an update on vehicle emissions trading schemes.
Network operator reassures on gas supplies:
The UK is well-placed to meet winter demand according to the gas network operator after concerns were voiced over storage levels.
National Gas said the overall picture across Great Britain’s eight main gas storage sites remains healthy with average levels at just over 60% across the board. It also said a diverse range of sources are used to meet demand.
Its comments came after Centrica, which owns the country’s largest gas storage facility, said the UK had less than a week of gas demand in storage due to colder-than-usual weather.
The Government added: “We have no concerns and are confident we will have a sufficient gas supply and electricity capacity to meet demand this winter, due to our diverse and resilient energy system.”
Wind becomes UK’s largest electricity source:
New figures show wind outperformed gas in 2024 by generating more electricity for the first year ever.
Data published by the National Energy System Operator (NESO) show wind provided a record 30% of Britain’s electricity last year, up from 28% in 2023, while gas produced 26.3%.
A total of 58% of Britain’s electricity came from clean power sources in 2024 as nuclear generated 14% and other renewables provided 13.8%. Coal produced only 0.6% last year, as Britain’s last coal-fired power station closed down in September.
RenewableUK’s Director of Future Electricity Systems, Barnaby Wharton, said the role of wind is set to grow as new projects go live in 2025.
“But to meet the Government’s target of clean power by 2030, we will need to maximise the amount of new capacity we secure in every annual auction for Contracts for Difference across all renewable sources,” he said.
2024 first year to pass 1.5 degree threshold:
Countries have been urged to double down on efforts to cut emissions after new data showed 2024 was the first year to see the 1.5C warming threshold breached.
The World Meteorological Organisation (WMO) confirmed that 2024 was the warmest year on record, based on six international datasets.
The past ten years have all been in the top ten, in an “extraordinary streak of record-breaking temperatures”.
UN chief António Guterres described the recent run of temperature records as “climate breakdown” and that countries needed to accelerate efforts to cut emissions.
UK Energy Secretary Ed Miliband said the news was alarming but said that “We have the answers to tackle this existential threat and give us energy security and create good jobs. That is why this government has a mission to make Britain a clean energy superpower, including accelerating to net zero,”
That concludes this issue of the UK Energy Industry News Update, highlighting key developments shaping the energy sector. For further details or to discuss how these changes may impact you, please contact us.