United Kingdom: Oil, Gas & Electricity

This weekly update examines the UK's latest sanctions developments, including amendments to general licences for oil projects and Lukoil entities, new guidance on banknote trading prohibitions, and expanded sanctions targeting Russian banks and shadow fleet vessels. The briefing also covers regulatory guidance from the Solicitors Regulation Authority on sanctions compliance risks.

The High Court's decision in SmartestEnergy Business Ltd v Odeon Arcade Ltd has clarified a critical aspect of the Electricity Act 1989, determining when energy suppliers can pursue landlords for unpaid charges under deemed contracts in multi-let properties. The ruling addresses whether premises containing separately occupied units can be classified as "unoccupied" when served by a single meter, with significant implications for debt recovery strategies in the energy sector.

The new “opt-out” power under Section 35B of the Planning Act 2008 allows developers to apply to direct development out of the NSIP/DCO regime. We examine the procedure, guidance, and implications for energy projects

The UK government's Reformed National Pricing Delivery Plan signals a fundamental shift in energy policy toward strategic planning and coordination. The Strategic Spatial Energy Plan, expected in autumn 2027, will identify optimal locations for electricity and hydrogen generation infrastructure, guiding private investment decisions. These reforms will reshape how generation, storage and network infrastructure is sited, financed and built across the UK energy sector.

The United Kingdom faces a critical energy infrastructure challenge as chronic grid connection delays and soaring electricity costs drive a fundamental shift towards behind-the-meter power solutions. This transformation is creating a new paradigm where energy capacity has become the fourth pillar of real estate valuation, alongside location, access, and planning status.

Satisfying demand for dispatchable baseload power generation is a priority for governments. Even better if delivered via low carbon solutions. Hard-to-abate industries are also focusing on how to decarbonise their processes.

The Supreme Court's landmark decision in Orsted v HMRC has significant implications for offshore wind developers, denying capital allowances on essential survey and study costs totaling approximately £49 million.

Battery technology advances are driving unprecedented growth in recycling innovation, with patent filings for end-of-life battery processing increasing seven-fold in the last decade. The European Patent Office's latest analysis reveals how the race to create a circular battery economy is accelerating, particularly in chemical transformation processes that could address critical material shortages and mounting waste concerns.

In December 2024, the EU’s Carbon Removal and Carbon Farming Certification Framework Regulation ("CRCF") (EU 2024/3012) was published, with the aim of establishing a harmonised, voluntary certification system for three main activities...