Energy Policy & Regulation Report

2025 has been a transformative year for energy policy, with the rapid expansion of digital infrastructure and the rising importance of flexibility now central to balancing intermittent renewables and maintaining a resilient, intelligent grid.

Our final Energy Policy & Regulation Report of the year brings these developments into sharp focus, examining how they are reshaping the energy landscape and defining the trajectory for the year’s close and beyond:

• Extended non-commodity relief: broadened under the British Industrial Competitiveness Scheme to lower energy costs, support competitiveness, and boost investment across UK industry.

• Third Party Intermediary (TPI) regulation: Ofgem appointed as regulator to ensure fairer outcomes and greater transparency for energy customers.

• AI Growth Zones: accelerating data centre deployment, reducing electricity costs, improving connections, and strengthening the UK’s domestic AI and industrial capabilities.

• RIIO-3 determinations confirmed: Ofgem finalises 2026–31 RIIO-3 price controls, capping network revenues while incentivising performance and supporting long-term investment in transmission and distribution.

• Other industry news: the DCUSA modifications addressing high residual charges for public EV charge points, plus further policies and funding shaping EV costs and infrastructure in 2026.