UK Energy Law Guide: Rules, Renewables & Deals

Overview

Energy law covers the rules governing how electricity, gas, heat and fuels are generated, transported, traded, supplied and consumed across the UK. It brings together primary legislation such as the Electricity Act 1989, the Gas Act 1986, the Energy Act 2013 and the Energy Act 2023, alongside regulations made under those Acts, licence conditions set by Ofgem, and planning and environmental rules that affect where and how energy infrastructure can be built.

On the commercial side, it takes in contracts between generators, suppliers, network operators and end users, as well as the property agreements that sit underneath any physical installation, such as options, leases, wayleaves and easements. Renewable generation adds a further layer, with schemes like Contracts for Difference, the Renewables Obligation (now closed to new entrants) and smaller export tariffs shaping project economics. In practice, most energy matters involve a blend of regulatory compliance, contractual negotiation and landowner relationships working together.

Key steps

1. Work out what you are actually dealing with. Before anything else, be clear on whether you are a landowner, developer, investor, supplier or consumer, because each sits in a different part of the regulatory map. A farmer leasing a field for a battery storage site has very different obligations from a company buying power under a corporate PPA.
2. Map the regulatory regime that applies. Check whether the activity needs an Ofgem licence or falls under a licence exemption, whether planning permission or a Development Consent Order is required, and which environmental permits are triggered. Getting this wrong early can delay a project by months and push costs up considerably.
3. Pin down the property and land rights. Energy projects almost always need rights over land, whether that is a lease for the site itself, wayleaves for cables, or easements for access. Make sure the term, break rights, decommissioning obligations and rent review mechanics are all properly documented before any works begin.
4. Get the commercial contracts right. Power purchase agreements, connection agreements, O&M contracts and grid offers all need careful review. Pay particular attention to curtailment risk, change in law clauses, indexation of payments, and what happens on insolvency of any party in the chain.
5. Plan for the whole lifecycle. Energy assets run for decades, and the law that applies at year one will not be the law that applies at year fifteen. Build in flexibility for regulatory change, keep compliance records tidy, and think early about end of life obligations, including site reinstatement and equipment disposal.