Change Proposal sought to address industry concerns - Change of Occupier:
OFGEM as part of Non-Domestic Market Review, were informed of excessive and inconsistent documentation requested by some suppliers to prove a Change of Tenancy (COT). This can cause a significant delay in trying to secure a new supply contract.
Details of Retail Energy Code (REC) Modification R0155 is available:
OFGEM CEO Voices support for Zonal pricing:
OFGEM CEO Jonathan Brearley in a recent interview said he supports a shift to zonal power pricing. With the current change taking place within the sector, he didnโt think it was โcredibleโ to continue with the current system of national wholesale prices.
Jonathan went on to say OFGEM had a robust debate and has come to the view that zonal pricing is the best way forward. Industry groups have voiced concerns over zonal pricing which is being considered by the Government as part of a review of electricity market arrangements, arguing it would undermine investment in low-carbon energy.
Plans for new nuclear to be accelerated:
New planning rules will clear the path for small nuclear reactors to be built for the first time ever in the UK, the government announced.
As the government slashes red tape, new planning rules include scrapping the set list of eight sites for nuclear stations across England and Wales means that new projects could be built anywhere. Also, the removal of the expiry date on nuclear planning rules, so projects donโt get timed out, will mean that industry can plan for the long term.
Department of Energy Security and Net Zero (DESNZ) support large biomass:
DESNZ published the outcome of its consultation on transitional support for large-scale biomass generators.
Current government support for biomass plants ends in 2027. The government has decided that despite some strong objections to supporting biomass, it will offer transitional support to large generators.
As Biomass generation is a significant contributor to the UKโs generation mix, currently around 5% of UK electricity generation, maintaining existing large-scale biomass generators would therefore increase the resilience of the electricity system and support the security of supply. Further support to generators, will be subject to a rigorous assessment to ensure this provides value for money for consumers. The cost of support, which will be passed through to end users, is not yet known.
DESNZ Publishes Guidance on Future Phases of ESOS:
The guidance confirms that the changes to target net zero are now postponed to Phase 5 and changes to the qualification threshold will also be delayed.
Although the deadline for submitting Phase 3 action plans has passed, ESOS participants can submit before 5 March 2025 without remedial action.
End users covered by the scheme should check that they have met their obligations.
UK Confirms 81% Emissions Reduction Target:
The Government has confirmed its commitment to cut greenhouse gas emissions by 81% by 2035. The formal submission of the UKโs Nationally Determined Contribution (NDC) comes ahead of COP30 in Brazil later this year.
Under the Paris Agreement, nations submit an NDC every five years ahead of the upcoming COP.
Gareth Redmond-King, Head of International Programme at the Energy and Climate Intelligence Unit, said: โThis is genuine leadership from the UK on global efforts to reduce emissions, which poll after poll shows is what the public wants to see from the government.โ
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.