SI 2026/1151 - The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2026

S TAT U T O R Y I N S T R U M E N T S 2026 No. 1151 ENERGY The Contracts for Difference (Electricity Supplier Obligations)

(Amendment) Regulations 2026 Made - - - - 2nd November 2026 Laid before Parliament 3rd November 2026 Coming into force - - 24th November 2026 The Secretary of State makes these Regulations in exercise of the powers conferred by section 27(2)(b) of the Energy Prices Act 2022(a).

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2026 and come into force on 24th November 2026.

(2) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Amendment of the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014

2. The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014(b) are amended as follows.

Amendment to regulation 2 (interpretation)

3. In regulation 2, in paragraph (1), in the definition of “SoS funds”, omit “(under section 154(2)(b) of the Act)”.

Amendment to regulation 5 (CFD quarterly contribution)

4. In regulation 5, for the definition of “SoS repayment” substitute— “SoS repayment is the total amount of SoS funds that the CFD counterparty was required to repay during that period;”.

Amendment to regulation 7 (estimated cost, income & electricity supply)

5. In regulation 7—

(a) 2022 c. 44

(b) S.I. 2014/2014; relevant amending instruments are S.I. 2016/363, 2020/709 and 2024/1159.(a) in paragraph (1), for “any SoS repayment and the CFD counterparty’s estimates of TGPR and NDSR” substitute “the CFD counterparty’s estimates of any SoS repayment, TGPR and NDSR”;

(b) in paragraph (2), before sub-paragraph (a) insert— “(za) the terms on which any SoS funds have been or are expected to be provided to the CFD counterparty;”.

Polly Billington Minister of State 2nd November 2026 Department for Energy Security and Net Zero EXPLANATORY NOTE (This note is not part of the Regulations) These Regulations relate to the levy arrangements that support the Contracts for Difference scheme established under Chapter 2 of Part 2 of the Energy Act 2013 (c. 32) (“the 2013 Act”). Government funds can be paid into the scheme to reduce the amount of the levy. These Regulations amend the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 so as to broaden the circumstances in which that can happen. They respond to a decision to provide financial assistance under section 13 of the Energy Prices Act 2022 via the CFD counterparty (the powers conferred by section 13 remain exercisable by virtue of S.I. 2026/979).

Regulation 3 removes wording which previously meant that only Government funds paid under the power in section 154(2)(b) of the 2013 Act could be taken into account in levy calculations.

Regulation 4 removes the rule under which Government funds paid into the scheme had to be paid back three quarters later. This means that the amount (if any) that the CFD counterparty has to repay depends on the terms on which the Government funds were provided and regulation 5 makes consequential changes in relation to the determination of the interim levy rate.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. © Crown Copyright 2026 Printed and published in the UK by The Stationery Office Limited under the authority and superintendence of Saul Nassé, Controller of His Majesty’s Stationery Office and King’s Printer of Acts of Parliament.

£6.40

http://www.legislation.gov.uk/id/uksi/2026/1151