Energy Act 2023: Electricity Storage

In the fourth in our series of briefings following the passing of the Energy Act 2023 (the Act) on 26 October 2023, our energy experts at Norton Rose Fulbright look at the implications of the Act on regulation of the electricity storage sector.

Electricity Storage Regulation

Electricity storage was, for many years, without a explicit regulatory regime. Whilst Ofgem and the UK government saw fit to treat electricity storage in a manner similar to electricity generation, neither the primary legislation underpinning the electricity sector, the Electricity Act 1989 (EA 1989), nor Ofgem's licensing conditions explicitly endorsed this. The result was that electricity storage operators found themselves subject to a regulatory regime which did not provide the certainty of specific legislative measures, causing regulatory uncertainty and, ultimately, creating a barrier to investment in storage assets.