Understanding the New Regulations for Energy Code Management in the UK

The UK government has introduced the Code Manager Selection (Competitive) Regulations 2025, a significant legislative step aimed at reforming how the energy sector operates, specifically in terms of governance. Here's a simplified breakdown of what this new legislation entails and its implications for the energy industry.

What are the New Regulations About?

The regulations are designed to give the Gas and Electricity Markets Authority (GEMA) the necessary powers to oversee the selection process of code managers in the energy sector. A code manager is a newly established role responsible for managing specific industry codes, which are crucial for the smooth operation of the energy system. These regulations focus on selecting these managers through a competitive process when there are multiple eligible candidates.

Why is This Important?

Previously, the governance of energy codes was managed by industry parties, which worked well when changes were gradual and predictable. However, with the rapid advancements towards Net Zero and clean energy, there's a need for a more dynamic and accountable system. The new framework aims to streamline processes, making them clearer and more adaptable to future changes. The ultimate goal is to ensure the energy sector evolves in line with environmental goals and consumer needs.

How Does the Competitive Selection Work?

The regulations empower GEMA to conduct a competitive selection process. This involves a single-stage competition where candidates are evaluated based on evidence provided. GEMA will score candidates, with certain criteria being weighted more heavily to ensure the best candidate is chosen. This process ensures transparency and fairness in selecting code managers.

Who is Affected by This Change?

The regulations apply across England, Wales, and Scotland and primarily affect existing code administrators and other energy industry players. While there are minimal impacts on businesses, charities, and voluntary bodies, current code administrators will need to adapt to the new requirements.

Consultation and Support

The competitive selection process was open for public consultation, which received positive feedback from most respondents. Following the introduction of these regulations, GEMA will provide detailed guidance to help prospective candidates understand and navigate the selection process effectively.

Conclusion

The Code Manager Selection (Competitive) Regulations 2025 represent a forward-thinking approach to managing the UK's energy industry. By introducing a competitive selection process for code managers, the government aims to create a more agile and accountable system that aligns with the country's Net Zero ambitions. As the energy landscape continues to evolve, these regulations are a step towards ensuring governance keeps pace with technological and environmental changes.