This page mainly applies to England and Wales. Scotland and Northern Ireland may have different rules — check the jurisdiction before relying on this information.
Last amended by Planning and Infrastructure Act 2025 in 2025. 1 recorded amendment effect (legislation.gov.uk changes data).
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Energy Act 2023 is the largest energy legislation in UK history. It establishes the legal frameworks for carbon capture and storage, hydrogen production, and new nuclear technologies. It creates Great British Nuclear as a body to support nuclear development, reforms the energy licensing regime, and provides powers for the Independent System Operator and Planner (ISOP) to manage the electricity system. The Act supports the UK's transition to net zero by 2050.
Key Points
- Establishes a carbon dioxide transport and storage licensing and regulatory framework (Part 1)
- Creates a hydrogen production business model with revenue support mechanisms (Part 2)
- Establishes the Independent System Operator and Planner (ISOP) for electricity and gas system planning (Part 4)
- Creates Great British Nuclear to support the development of new nuclear projects (Part 3)
- Reforms the energy licence modification process and strengthens Ofgem's enforcement powers (Part 5)
- Introduces powers for heat network zoning — areas where buildings must connect to heat networks (Part 8)
- Provides for regulation of carbon capture usage and storage (CCUS) and CO2 transport
- Reforms the offshore oil and gas decommissioning regime
- Establishes Great British Nuclear
- Licensing for carbon capture, transport, and storage
- Independent System Operator and Planner
- Hydrogen production and transport regulation
- Reform of offshore decommissioning
- Energy smart appliances and load control
- Creates business models for carbon capture and storage (CCS) infrastructure (Part 1)
- Establishes hydrogen production business model and low carbon hydrogen standard (Part 2)
- Creates regulatory framework for CO2 transport and storage licensing (Part 3)
- Establishes Great British Nuclear as government-owned company (Part 5)
- Extends Ofgem's powers to impose financial penalties (Part 7)
- Creates regime for hydrogen and ammonia storage licensing (Part 4)
Parts & Sections
Amendments History
2023 — Energy Act 2023
96 recorded amendment effects (legislation.gov.uk changes data).
2024 — Digital Markets, Competition and Consumers Act 2024
3 recorded amendment effects (legislation.gov.uk changes data).
2025 — Planning and Infrastructure Act 2025
1 recorded amendment effect (legislation.gov.uk changes data).
Frequently asked questions
- What is the main purpose of the Energy Act 2023?
- The Energy Act 2023 is described as the largest energy legislation in UK history. It establishes legal frameworks for carbon capture and storage, hydrogen production, and new nuclear technologies. The Act also creates Great British Nuclear, reforms energy licensing, and provides powers for the Independent System Operator and Planner to manage the electricity system, all supporting the UK's transition to net zero by 2050.
- What is Great British Nuclear and what does it do?
- Great British Nuclear is a government-owned company created by the Act to support the development of new nuclear projects. The Secretary of State has the power to designate a specific company as the Great British Nuclear company to facilitate these energy projects. This body plays a central role in the UK's strategy for expanding nuclear energy capacity.
- Is it illegal to transport or store carbon dioxide without a licence?
- Yes, it is an offence to carry out carbon dioxide transport or storage activities without a valid licence. The Act establishes a specific licensing and regulatory framework for these activities to ensure they are managed safely and in accordance with the new legal standards introduced for carbon capture, usage, and storage infrastructure.
- What are heat network zones under the Energy Act 2023?
- The Act introduces powers for heat network zoning, which designates specific areas where buildings are required to connect to heat networks. This measure is part of the broader framework to support the transition to low-carbon heating solutions and improve energy efficiency in designated regions across England and Wales.
- How does the Act change the powers of Ofgem?
- The Act reforms the energy licensing regime by modifying the licence modification process and strengthening the enforcement powers of Ofgem. Specifically, it extends Ofgem's authority to impose financial penalties on those who breach energy regulations. These changes aim to ensure stricter compliance and more effective oversight of the energy sector.
- How does the Energy Act 2023 support hydrogen production?
- The Act creates a specific business model for hydrogen production that includes revenue support mechanisms. It also establishes a low carbon hydrogen standard and sets up a regulatory framework for licensing the storage of hydrogen and ammonia. These provisions are designed to encourage investment and ensure the production of hydrogen meets defined environmental standards.