Energy Matters - November 2025

Welcome to our November Energy Matters Newsletter

The energy sector is a rapidly changing market with daily updates on technological advances, regulatory reviews, policy updates, funding decisions. In each edition of our Energy Matters Newsletter, we aim to provide a user-friendly, summary update of some of the key issues we are seeing across the renewable energy and resource management sectors.

If you would like to discuss any of the issues raised, please contact a member of our energy team.

Stay connected: Follow our Energy & Resource Management showcase page on LinkedIn here.

Energy Spotlight

Autumn Budget 2025

The highly anticipated Autum Budget was presented by the Chancellor to Parliament yesterday and contained a number of measures which will impact the energy sector.

The government said it is committed to its Industrial Strategy which aims to “tackle high industrial electricity costs, ensure strategic investment projects receive timely grid connections, invest in clean energy, and strengthen our connections to the EU energy market.”

Energy Costs

The government will introduce the British Industrial Competitiveness Scheme from April 2027, which aims to reduce electricity costs for manufacturing frontier industries within the Industrial Strategy’s growth sectors (the ‘IS-8’), and manufacturing foundational industries which provide important inputs to the frontier industries, who meet a certain threshold of electricity intensity. You can view the consultation on eligibility .

The Budget also delivered a set of measures to remove around £150 of costs on average from household energy bills from April next year. "Energy costs will be reduced by the ending of the Energy Company Obligation, which is currently funded through bills, and through the government funding 75% of the domestic cost of the legacy Renewables Obligation for three years." (Autumn Budget)

The Energy Company Obligation (ECO) will end on 31 March 2026. ECO is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help reduce carbon emissions, funded via energy bills. Instead, some of the funding earmarked for ECO would now go into removing around £150 of costs on average from household energy bills from April next year. 

As well as taking costs off household energy bills, the government will provide an additional £1.5 billion capital investment to tackle fuel poverty through the Warm Homes Plan, in addition to the £13.2 billion of funding allocated at Spending Review 2025. Details to be announced in the Warm Homes Plan.

Electric Vehicles

The government stated that it is firmly committed to supporting the transition to EVs by making electric cars accessible for everyone. It is introducing Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing VED. Electric car drivers will pay a road charge of 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile. The government stated it “recognises the importance of effective and accessible charging infrastructure to support the EV transition and is taking action, including reinvesting eVED revenues, to support this”.

Other EV measures include:

• Boosting the Electric Car Grant scheme with an additional £1.3 billion of funding and extending it to run until 2029 30. 
• Increasing the threshold at which motorists with new EVs have to pay the VED Expensive Car Supplement from £40,000 to £50,000, with effect from 1 April 2026.
• Delaying changes to benefit-in-kind rules for Employee Car Ownership Schemes until April 2030. 
• Extending funding for the Drive35 programme, allocating a further £1.5 billion to 2035 and taking total funding to £4 billion over the next 10 years, to support the UK automotive manufacturing sector. 
• Using revenue generated from eVED to support investment in maintaining and improving the condition of roads across the country. By 2029-30, the government will commit over £2 billion annually for local authorities to repair, renew, and fix potholes on their roads.
• Investing an additional £100 million in EV charging infrastructure, including funding to support the installation of workplace chargepoints.
• Allocating £100 million of resource funding for local authorities and public bodies to support the training and deployment of specialist staff, accelerating the rollout of public chargepoints.
• Launching a consultation on permitted development rights for cross pavement EV charging 
• Introducing a 10-year 100% business rates relief for eligible EV chargepoints and EV-only forecourts
• Extending the 100% first year allowances (FYAs) for zero emission cars and EV chargepoint infrastructure by a further year.
• Reviewing the cost of public EV charging, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers. The review will start in Q1 2026 and report by Q3 2026.

Grid Connections

The government recognised that connections to the grid remain one of the biggest blockers in delivering key growth projects across the economy. The government, alongside NESO and Ofgem, is therefore going further to overhaul connection processes by:

• Applying new powers being sought in the Planning and Infrastructure Bill to create mechanisms to reallocate released capacity and reserve future capacity for strategically important demand projects.
• Working with Ofgem to explore enhanced entry and membership requirements to ensure viable projects progress in the demand queue.
• Reducing the time to power by exploring self-build for high voltage grid infrastructure and more flexible connections where possible.
• Removing speculative demand in the grid connection queue. The Department for Science, Innovation and Technology (DSIT) will set out a strategic plan for data centres to ensure only the most strategic and credible projects are taken forward.

Nuclear power

• The government will continue to identify potential sites for large-scale nuclear power. 
• The Prime Minister is issuing a Strategic Steer, which sets clear expectations for the civil, defence, and decommissioning nuclear sectors to accelerate safe and efficient delivery through proportionate regulation and stronger collaboration.
• In response to the recently published report from John Fingleton and his team, government will present a full implementation plan within three months. Implementation will be completed in two years. 
• The Office of Nuclear Regulation will be given the ability to consider overall strategic factors such as energy and national security imperatives in the delivery of its statutory purposes.
• The government continues to be committed to its Green Financing Programme, under which the UK issues sovereign green bonds - ‘green gilts’ - via the DMO, and retail Green Savings Bonds (GSBs) via NS&I. The government has updated the Green Financing Framework to add nuclear energy for power generation to the list of policies eligible to be funded by green gilts and GSBs. 

Oil and gas

• The Government has published its North Sea future plan
• Confirms new Oil and Gas Price Mechanism will take over from Energy Profits Levy in 2030

Read the Budget in full.

Read the Government’s press release.

EV chargepoint networks investment boost

The UK Government has announced a £10 million funding package to support the development of cutting-edge technologies to strengthen England’s electric vehicle (EV) charging network. The scheme is designed to ensure that the UK’s charging infrastructure remains resilient as EV adoption by customers continues to grow (particularly in rural areas) and alleviate against current grid connection challenges.

This announcement follows other investment trends in the EV market, with the Government this year revealing a £650 million grant to subsidise EV purchase prices, a £63 million package to support at-home EV charging and the LEVI Fund providing £343 million capital to local authorities. 

Read the full article.

UK Data Centres – Power Up of Tier Two Regions

For years, London and its surrounding region have been the epicentre of UK data centre development. Known as tier one sites, these locations offered dense connectivity and established infrastructure, as well as ready access to a skilled workforce. But as grid constraints tighten, developers and investors are increasingly looking beyond London. The shift toward tier two sites (regional hubs outside the capital) marks a diversification in the real estate strategy for data centres.

Read the full article.

Building Regulations – key considerations for heat networks

Louise Mansfield, Tim Kittow and Ffion Benham summarise some of the key issues raised in our recent Points of Connection webinar - Building Regulations – key considerations for heat networks. The article considers the application of the Building Regulations 2010 and the Building Safety Act 2022 as well as what steps and procedures must be adhered to in order to ensure compliance.

Read the article.

Visit our Points of Connect hub - our free resources for the District Energy sector here.

Quick Links District Energy Electric Vehicle Infrastructure Electricity Energy Efficiency Energy Sector Reform Hydrogen Nuclear Solar and Battery

District Energy

ESA has updated the Heat Network Prospectus

Environmental Services Association November 2025

The prospectus provides insight into the heat available at a range of operational EfW facilities. Through an interactive map, individual heat customers can gain detailed information about each facility, including up-to-date contact details.

Government publishes TS1 Heat Network Technical Standard

Department for Energy Security and Net Zero 19 November 2025

This draft technical standard sets out the minimum requirements necessary for the proper design, installation, and operation of Heat Networks.

Ofgem announce consultation on Heat networks registration guidance

Ofgem 17 November 2025

An Ofgem consultation seeks views on its draft guidance for heat networks registration. The guidance sets out the roles, responsibilities, and obligations for authorised persons that are operating or supplying a relevant heat network during the first part of the initial period and are therefore required to complete heat network registration.

Ofgem announce consultation on heat networks authorisation conditions

Ofgem 3 November 2025

Ofgem are consulting on the full suite of heat networks authorisation conditions (the regulatory rules), after having previously consulted on them separately over the last year.

Energy from Waste (EfW) Heat Offtake guide published 

Environmental Services Association November 2025

The Environmental Services Association (ESA) has published its Guide to Energy from Waste (EfW) Heat Offtake that supports the potential of EfW facilities to export low-carbon heat in the UK. The guide outlines technical, commercial, and regulatory considerations for EfW heat offtake - including checklists for developers, operators and wider stakeholders.

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Electric Vehicle Infrastructure 

Government to cut red tape to make charging electric vehicles at home easier

Department for Transport 29 October 2025

Electric car owners will find it easier and cheaper to charge their vehicles at home under new plans unveiled by the government, designed to make it fairer for renters and those without a private driveway.

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Electricity

British Businesses to save over £400m a Year as government cuts electricity costs

Department for Business and Trade 31 October 2025

Business Secretary Peter Kyle has announced that government will go ahead with plans to increase the discount on electricity network charges for businesses in sectors like steel, cement, glass, and chemicals, which employ around 400,000 people in total across the UK, from 60 percent to 90 percent

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Energy Efficiency 

Government consultation: Exploring the role of alternative clean heating solutions

Department for Energy Security and Net Zero 18 November 2025

The government are seeking views on low carbon heating technologies that could be used to decarbonise heat in the small number of properties that may not be suitable for heat pumps and heat networks.

Boiler Upgrade Scheme expanded to include air-to-air heat pumps

Department for Energy Security and Net Zero 18 November 2025

This currently offers grants of £7,500 off the cost of installing an air source or ground source heat pump, which can keep homes warm during the winter. 

Now the scheme has been expanded to offer a £2,500 discount off the cost of installing an air-to-air heat pump, which can offer the best of both worlds, providing heat in winter and keeping you cool in summer. 

Heat network developers pledge to slash costs of low carbon heat for consumers

The Energyst 10 November 2025

Heat network developers have today publicly committed to dramatically reducing the cost of low carbon heat for consumers.

The commitment comes in a letter to the Chancellor, Rachel Reeves, from the UK’s leading heat network bodies – ADE: Heat Networks, the Heat Networks Industry Council and the UK District Energy Association. Together, they represent over 250 organisations, £9 billion of potential investment and more than 5,000 jobs.

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Energy Sector Reform

New Energy Resilience Strategy to better protect infrastructure

Department for Energy Security and Net Zero 18 November 2025

A new government strategy will help safeguard critical energy infrastructure and protect consumers and businesses from costly disruption. 

Government has published 3 draft energy national policy statements

Department for Energy Security and Net Zero 13 November 2025

The government published its response to its consultation on revisions to energy national policy statements EN-1, EN-3 and EN-5 and laid the three draft NPSs in Parliament. The new versions of the National Policy Statements will come into force following a 21-sitting day consideration period.

Ofgem to set out plan to ‘reset and reform’ growing energy debt

Ofgem 30 October 2025

A scheme to tackle historical debt built up during the energy crisis could help around 195,000 customers by writing off up to £500m, Ofgem announced today.
The regulator confirmed a final consultation on the first phase of its Debt Relief Scheme will be published shortly as part of its plans to help consumers and support suppliers to bring down £4.4bn of debt in the energy system. 

Climate plan captures clean energy benefits and boosts investment

Department for Energy Security and Net Zero 29 October 2025

Working families and businesses will benefit from clean energy and climate action, as the government seizes the opportunities of the clean energy economy.

Greater protection for families and businesses in energy market with Energy Ombudsman consultation

Department for Energy Security and Net Zero 23 October 2025

Stronger protections and consumer rights to be introduced for families and businesses when things go wrong in the energy market. Plans to strengthen the Energy Ombudsman will help customers resolve disputes with their suppliers, giving it further powers to stand up for consumer interests.  

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Hydrogen

Ofgem has invested £107m into 2 new hydrogen projects alongside prior investment

National Gas 14 November 2025

Ofgem has confirmed a total of £164 million for three National Gas projects that will accelerate the delivery of a core hydrogen network. On Friday 14 November, Ofgem announced an additional £107 million of funding for two new projects, adding to £57 million confirmed in June for Project Union: East Coast.

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Nuclear

Draft National Policy Statement for nuclear energy generation (EN-7) published

Department for Energy Security and Net Zero 12 November 2025

Draft government policy on the need for and standards applicable to nuclear energy generation projects seeking development consent.

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Solar and Battery

NHS sites to cut bills by £65m with Great British Energy solar panels

Department for Energy Security and Net Zero 24 October 2025

As part of an expanded scheme to fund solar panels for NHS sites, military sites and schools, 34 NHS trusts across England, including 10 already in programme, will receive funding from Great British Energy and government for new solar panels

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