UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP
A joint consultation between Ofgem and BEIS published in July 2021 proposed the creation of an independent system operator, known as the Future System Operator (FSO). In April 2022, Ofgem published a document setting out the decisions of the joint consultation, which explains Ofgem’s collective commitment to cre- ate an expert, impartial FSO with an important duty to facilitate net zero while also maintaining a resilient and affordable system. In November 2022, Ofgem published its decision on the initial findings of its Electricity Transmis- sion Network Planning Review – namely, that the FSO should deliver a new electricity transmis- sion network planning output called a Central- ised Strategic Network Plan. Part 5 of the Energy Act 2023 provided for the establishment of the FSO, which was relabelled NESO in January 2024. Please see 1.1 Law Governing the Struc- ture and Ownership of the Power Industry for more information. In December 2024, as a “first step to repair Great Britain’s retail energy market”, the government announced a call for evidence on the role of Ofgem. It sought views on Ofgem’s remit, stand- ards and the tools it is equipped with. 1.6 Recent Changes in Law or Regulation The Great British Energy Act 2025 (see 1.1 Law Governing the Structure and Ownership of the Power Industry ) has been described as landmark legislation, introducing Britain’s new publicly owned energy company, Great British Energy. The government has announced that the Energy Secretary will soon outline Great British Energy’s strategic priorities – including which technologies the government expects the com- pany to focus on and how it should consider the public benefits from investment decisions.
Another major development was the Energy Act 2023, which has provisions concerning energy production and security and the regulation of the energy market, including on: • the licensing of carbon dioxide transport and storage (Part 1); • commercial arrangements for industrial car- bon capture and storage and for hydrogen production (Part 2); • new technology, including low-carbon heat schemes and hydrogen grid trials (Part 4); • the independent system operator and planner (Part 5) (ie, the FSO, which became NESO – see 1.5 Central Planning Authorities ); • gas and electricity industry codes (Part 6); • heat networks (Part 8); • energy smart appliances and load control (Part 9); • the energy performance of premises (Part 10); • the resilience of the core fuel sector (Part 12); • offshore energy production, including environ- mental protection, licensing and decommis- sioning (Part 13); and • the civil nuclear sector, including the Civil Nuclear Constabulary (Part 14). On 5 December 2022, the UK ban prohibiting the import, supply and delivery of Russian oil and oil products into the UK and associated ancillary services in respect of these activities came into effect. The principal regulations that give effect to sanctions against Russia are the Russia (Sanctions) (EU Exit) Regulations 2019 (SI 2019/855), which incorporate the amendments made by the Sanctions (EU Exit) (Miscellaneous Amendments) (No 4) Regulations 2020, Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022 and Russia (Sanctions) (EU Exit) (Amend- ment) Regulations 2023. As of May 2025, this ban is still in force.
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