‘Significant moment’ for UK storage as regulator bids to end double charging with formal definition

By Alice Grundy
LinkedIn
Twitter
Reddit
Facebook
Email
Image: Anesco

The UK's regulator, Ofgem, is hoping to eradicate the double-charging of storage assets through the addition of a formal definition of energy storage to the regulatory framework.

Previously, there has been no formal definition of storage meaning that it has fallen prey to double charging, whereby it has been charged as both a demand customer for its imports and as a generator for its exports.

The regulator plans would amend the electricity generation licence to classify storage as a subset of generation, meaning providers would no longer have to pay final consumption levies when the electricity imported is used for storage.

Through a consultation, Ofgem is proposing to define storage as ‘the conversion of electrical energy into a form of energy which can be stored, the storing of that energy, and the subsequent reconversion of that energy back into electrical energy’, a definition suggested by the Electricity Storage Network.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Read Next

October 8, 2025
Repurposing EV battery packs and modules into BESS obviously has environmental benefits, but challenges around pricing, performance and safety remain, panellists at an industry event in London said last week.
October 7, 2025
BSW-Solar has called on the German government to impose a target of 100GWh of cumulative operational BESS by 2030.
October 7, 2025
The Philippines needs to establish clearly defined rules for the market participation of energy storage systems (ESS), the chair of the country’s regulator has said.
October 6, 2025
Asset manager AIP Management has bought a 49% stake in a 2.4GWh UK portfolio from global BESS investment platform BW ESS for a deal in excess of £650 million (US$873 million).
Premium
October 1, 2025
Local authorities approved 1,237MW/2,474MWh of grid-scale BESS in the UK, the latest data from our monthly roundup shows.

Most Popular

Email Newsletter